Great Investment Quotes
I picked these investment quotes because I think they teach good lessons, or I find them particularly relevant in today’s macro-economic environment. Some quotes from Warren Buffett, Paul Tudor Jones, and even Albert Einstein.
Great Investment Quotes
“Be Fearful when others are greedy. Be greedy when others are fearful”
I’ve found this largely to hold true. The March 2020 stock market crash was a prime example. Specifically bank and oil stocks. People ran from those stocks, even Warren himself.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
I’ve always liked this quote. There are some times in the stock market where you get the opportunity of a lifetime. Those times when the total market has moved down 20 or 30% and you can pick up those fantastic companies at a fantastic price.
“Don’t look for the needle in the haystack. Just buy the haystack!”
I think it’s well proven at this point that it’s extremely difficult to beat something like VTSAX, or SPY if that’s your poison, over time. No need to pick stocks and spend a lot of time on research.
Paul Tudor Jones
“Don’t focus on making money, focus on protecting what you have.”
Risk management is the key to success. When you lose 10% it takes more than 10% to get back to where you started. So you have to do everything you can to protect what you have.
“You learn more from your losses than your gains.”
So true. I look back on my losses and they were the biggest eye-opening events for me. I remember getting wrapped up in focusing on dividend and got stuck with some value traps. I learned how to make sure that never happens again.
“Remember, it’s the quality of your ideas, not the quantity that will result in the big money.”
I think one of the reasons this is true is because you can only focus on so much. You only need one big winner to compensate for losers or a mediocre portfolio. You can over diversify your holdings and get nowhere.
“I can’t say enough about the fact that earnings are the key to success in investing in stocks. No matter what happens to the market, the earnings will determine the results.”
I am not so sure I agree 100% here, but hey, it’s Peter Lynch, he is a better investor than me. Long-term this may be true; however, there has been lost of stocks fall on good earnings.
‘More people lost money waiting for corrections and anticipating corrections than the actual corrections”
This is one of my favorite investment quotes. I think it’s easy to know when to get out; it’s difficult to know when to get back in. If you do swing trade or use a 200 DMA; I think it is best after awhile to go ahead and get back in.
“Every basis point of return -let alone every 100 basis points-has a staggering difference in outcomes in the long run. That’s why you stay focused on the long-term and the rate of return…..”
“If you are selling because of missed earnings reports or the trend of the market or something, you’ve stopped looking at the rate of return the company can achieve over time.”
In short, don’t pay so much attention to the short time. You’ll eventually buy a stock that has a great earnings report but drops a fair amount. Keep your eyes on the long-term!
“Buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years.”
Who knows if this will prove true over the next ten years as inflation rears it’s ugly head today. The interest rates are moving up slowly and the prices of bonds are falling (down over 20% this year!)
“Compound interest is the 8th wonder of the world. He who understands it, earns it. He who doesn’t , pays it.”
That’s what so much of this is wrapped around. A good summary of making your money work for you. Even a bank account is paying interest, you can turn $100 into $1000 given enough years and a high enough interest rate.
“Historically, oil shocks have led to demand destruction that causes recessions. We’re going to start hearing the word stagflation a lot more.”
Another one I added for its relevance today. Oil has been on a huge increase. At what point will people stop driving and stop spending? Is stagflation on the way? We shall see.