There are an uncountable number of articles promising "the best
investment quotes of all time," or some variation. Most are good reads;
but they've become predictable. You know exactly what they're going to
contain: Buffett's line about being fearful when others are greedy,
Peter Lynch's deal about buying what you know, and a few classic Ben
Graham hits. Same quotes again and again.
So, a while back, I did some digging and found 10 great investing quotes that aren't as popular. Enjoy.
"Risk is what's left over when you think you've thought of everything."-- Carl Richards
Financial advisors say you should have six months of expenses saved
as an emergency fund. That's planning. The average duration of
unemployment today is 10 months. That's risk.
"In investing, what is comfortable is rarely profitable." -- Robert Arnott
Think about this: Three years after the book Dow 36,000 was published, stocks were down 40%. Three years after The Great Depression Ahead was published, stocks had doubled.
"When a possibility is unfamiliar to us, we do not even think about it." -- Nate Silver
The two biggest financial stories of the last 12 years were 9/11, and
the financial crisis. Be honest with yourself: How often did you think
about the possibility of these two things happening before they actually happened? If you're like 99.9% of people, the answer is never.
"People focus on role models; it is more effective to find antimodels -- people you don't want to resemble when you grow up." -- Nassim Taleb
You want to study the greats -- great investors like Buffett and Lynch, and great companies like Apple (NASDAQ: AAPL) and Costco (NASDAQ: COST) . But you also want to study the failures. Kodak. General Motors (NYSE: GM)
. Enron. Long-term Capital Management. Lehman Brothers. You'll probably
learn more from the failures than you will from the greats.
"Pundits forecast not because they know, but because they are asked." -- John Kenneth Galbraith
There's zero accountability of financial pundits. In fact, the most
popular media faces are almost never right, as websites like
PunditTracker.com are showing. Keep that in mind when sifting through financial news.
"Being slow and steady means that you're willing to exchange
the opportunity of making a killing for the assurance of never getting
killed."-- Carl Richards
I recently interviewed value investor Mohnish Pabrai, who had dinner a
few years ago with Buffett. Pabrai asked Buffett what happened to a
former business partner he used to pick stocks with. (I don't want to
name him because he's still in business today.) Buffett said they went
their separate ways because the former partner was too eager to get
rich, which meant leverage and, eventually, margin calls. Meanwhile,
Buffett and partner Charlie Munger "always knew they were going to be
rich and were in no hurry." Look who came out ahead.
"If you look carefully, almost all Old Money secrets can be traced to a single source: a longer-term outlook."-- Bill Bonner
It's well known that markets have become more short term. So what? No one said you have to become short term. My colleague Jeremy Phillips calls
this "time arbitrage," or "the concept of buying a stock from those
with a different time horizon, and selling on our own terms."
"No one can foresee the consequences of trivia and accident,
and for that reason alone, the future will forever be filled with
Speaks for itself. Some of the best investors have succeeded not
because they've predicted the future, but because they've dealt with
surprises better than most. That usually means having more cash and less
debt than seems reasonable.
"The stock market is a giant distraction to the business of investing." -- John Bogle
Motley Fool advisor Ron Gross says we should think of the market as a
company market, not a stock market. Here's a good example: On May 10,
2010, the Dow Jones (DJINDICES: ^DJI)
briefly fell almost 1,000 points, as high-frequency traders tripped
over themselves. But it's safe to say that not a single non-financial
business in the world was affected in any measureable way. That's the
difference between a company market and a stock market.
"In the corporate world, if you have analysts, due diligence, and no horse sense, you've just described hell." -- Charlie Munger
Really smart people with Ph.D.s used sophisticated math models to
conclude that mortgage lending was sound in 2005. They failed miserably.
Country bumpkins who didn't know what a balance sheet was said, "Hey,
my brother is broke and just got a $500,000 mortgage. That ain't right."
Last updated : 14 Sep 2020
I am 64 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 21 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
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