Exit Quote by David Einhorn
“We try not to have many investing 'rules,' but there is one that has served us well: If we decide we were wrong about something, in terms of why we did it, we exit, period.”
About This Quote
Source Interview: Podcast with David Einhorn, 2023
Admitting mistakes quickly and exiting a position prevents larger losses and preserves capital.
In simple terms: Accept errors, exit fast.
Key Takeaway
Exit promptly when wrong.
Themes
risk management
discipline
investment strategy
Mood
cautious
analytical
Type
advisory
practical
When to use this quote
- trading decisions
- portfolio rebalancing
- investment committees
Key Concepts
behavioral finance
loss aversion
Questions to Reflect On
- What signals would justify staying despite a mistake?
- How can you differentiate a temporary error from a fundamental flaw?
A Different Perspective
May overlook deeper analysis before exiting.
