David Tepper is a renowned hedge fund manager & co-founded Appaloosa Management in 1993 after 8 years at GS.
His aggressive style and confidence earned him the title of one of this generation's best money managers.
Here are 12 of his most insightful comments and ideas.
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His aggressive style and confidence earned him the title of one of this generation's best money managers.
Here are 12 of his most insightful comments and ideas.
THREAD
But first, here is a flavour of what Tepper currently owns; including Constellation Energy, Google, Amazon, Meta, Microsoft, Energy Transfer, and Macy's.
It is said that Tepper is slowly returning capital to his investors and plans to convert the fund into a family office.
It is said that Tepper is slowly returning capital to his investors and plans to convert the fund into a family office.
1. "I'm just a regular upper-middle-class guy who happens to be a billionaire".
- Tepper now owns a team in the NFL and the MLS, but he stays humble.
- Tepper now owns a team in the NFL and the MLS, but he stays humble.
2. "We’re consistently inconsistent. It’s one of the cornerstones of our success".
- Tepper was known to be an opportunist and someone who would seek returns in any asset class or corner of the market.
- Tepper was known to be an opportunist and someone who would seek returns in any asset class or corner of the market.
3. "We’re not afraid to lose money".
- He would also say that being afraid to lose money is one of the greatest repelents to making money.
- He would also say that being afraid to lose money is one of the greatest repelents to making money.
4. "Does being a risk-taker mean not being afraid of losing money sometimes? Then I’m a big risk-taker. Does it mean putting the firm in jeopardy? Then in that case I am not a big risk-taker".
- But a line must be drawn when it comes to risk that could take you down entirely.
- But a line must be drawn when it comes to risk that could take you down entirely.
5. "There is a time to make money and a time to not lose money. The key is to wait. Sometimes the hardest thing to do is to do nothing".
- Sometimes, the key is waiting. Biding your time until the big opportunities come your way.
- Sometimes, the key is waiting. Biding your time until the big opportunities come your way.
6. "Those who keep their heads while others are panicking do well. We keep our cool when others don’t. The point is, markets adapt. People adapt".
- Opportunities may arrive during times when the rest of the market is panicking. Keeping your cool is important.
- Opportunities may arrive during times when the rest of the market is panicking. Keeping your cool is important.
7. "Not that money’s a bad reason to do it, but it’s good to have some inkling of what you want to do. And like I said before, if you can figure out what you want to do, go for it and if you can’t, you’ll figure it out at some point and then go for it".
- Don't do it for money.
- Don't do it for money.
8. "We don’t really buy high-flyers. We buy before they get high-flyers".
- Focus on getting in early.
- Focus on getting in early.
9. "The main thing that makes Appaloosa stand apart from the pack is the depth of our analysis and the fact that we’re not afraid to be the first one to act on our convictions".
- Don't be afraid to act first.
- Don't be afraid to act first.
10. "We’re at the front of the pack, we are one of the first movers. First movers are interesting, you get to the good grass first, or sometimes the lion eats you".
- Be ready to exit if the facts move against you. First mover is not always an advantage.
- Be ready to exit if the facts move against you. First mover is not always an advantage.
11. "When it comes to decisions, I try not to be emotional. To drown out the noise and look at the important facts".
- Never act on emotion, just facts.
- Never act on emotion, just facts.
12. "You’re trying to figure out that inflection point".
- Tepper believes that there should be an inflection point of the stocks that you buy; something that change the market's sentiment and earn you big returns for being first.
- Tepper believes that there should be an inflection point of the stocks that you buy; something that change the market's sentiment and earn you big returns for being first.
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