In This Article
- 1. “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.” - Benjamin Graham
- 2. “In investing, what is comfortable is rarely profitable.” – Robert Arnott
- 3. “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” - Bernard Baruch
- 4. “It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong.” – George Soros
- 5. “The four most dangerous words in investing are: ‘This time it is different.’” – Sir John Templeton
- 6. “Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.” – Rakesh Jhunjhunwala
- 7. “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
- 8. “Bottoms in the investment world don’t end with four-year lows; they end with 10- or 15-year lows.” – Jim Rogers
- 9. “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it.” — Albert Einstein
- 10. "The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
- Conclusion
Navigating the world of investing can be overwhelming and daunting for every investor – beginner or experienced. Fortunately, many legendary investors have stood the test of time and shared their wisdom that can serve as a compass for navigating its complexities and gyrations!
Here are 10 powerful investing quotes that may help provide perspective and focus for your own investing strategy.
1. “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.” - Benjamin Graham
Having a financial plan is super important for every individual. Most people just start investing without having a proper plan in place takes into account their risk tolerance, how long they plan to invest, and their personal goals. In his quote, Mr. Graham, known as “the father of value investing," rightly mentioned that success in investing will come with come if you have a financial plan and also by keeping your emotions in check - “behavioural discipline”. Successful investors stick to their plan and avoid making impulsive decisions based on market ups and downs. By staying disciplined, you can avoid the pitfalls of fear and greed that often lead to bad investment choices.
2. “In investing, what is comfortable is rarely profitable.” – Robert Arnott
Robert Arnott is the founder and chairman of the board of Research Affiliates, an asset management firm. He is a pioneer of quantitative investing, challenges investors to step out of their comfort zones. Investing based on research rather than popular recommendations is often uncomfortable but crucial for achieving meaningful returns. As stock market investor, we often fail prey to hot tips and stock recommendations from friends, news channels or through social media. But the result is often unpalatable. Hence, step out of your comfort zone, study the company and research about them before you invest, just like you do when you buy a phone or a car.
Arnott’s philosophy urges individuals to embrace diligence and curiosity in their investment journey.
3. “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” - Bernard Baruch
Bernard Baruch was an American financier who was an adviser to U.S. Presidents Woodrow Wilson and Franklin D. Roosevelt. He is regarded as one of the legends in the history of investing, and in this quote, he points out a common mistake investor make – waiting to buy at the lowest point and sell at the highest. While timing the market can be tempting, it usually doesn't work. Instead, focus on investing regularly without trying to guess the perfect timing. It’s the time in the market that’s important rather than timing it!
4. “It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong.” – George Soros
Renowned hedge fund manager George Soros brings attention to the importance of risk management. While every investor gets some decisions right and others wrong, the difference lies in how profits are maximized and losses minimized. Soros urges investors to focus on balancing risk and reward.
5. “The four most dangerous words in investing are: ‘This time it is different.’” – Sir John Templeton
Sir John Templeton, a legendary investor and founder of the Templeton Growth Fund, warns against making decisions based on speculative trends. His advice encourages investors to rely on data and avoid chasing baseless assumptions, ensuring their choices are rooted.
6. “Respect the market. Have an open mind. Know what to stake. Know when to take a loss. Be responsible.” – Rakesh Jhunjhunwala
Known as India’s “Big Bull,” Rakesh Jhunjhunwala highlights the principles of humility, adaptability, and accountability in investing. Markets has its ups and downs – and its important to respect the market. Also, an important aspect of investing is risk management, you should know when to cut down your losses. Fighting the market and letting the ego get the better of you will never help in markets. So be humble, accept when you’re on the wrong side, have the heart to take the loss and find the next good opportunity. Don’t fight the market, respect it!
7. “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
Warren Buffett, hailed as the Oracle of Omaha, is one of the most celebrated investors of all time. This quote underscores the virtue of patience in investing. Buffett believes wealth is created by those who remain invested over the long term, resisting the urge to make impulsive decisions driven by short-term market fluctuations.
8. “Bottoms in the investment world don’t end with four-year lows; they end with 10- or 15-year lows.” – Jim Rogers
Jim Rogers, a successful investor and co-founder of the Quantum Fund, stresses the value of contrarian investing during market downturns. Identifying long-term opportunities in challenging times can lead to significant gains, provided one is prepared for short-term volatility and can absorb the losses that may come in these times. After high – high risk comes with high returns!
9. “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it.” — Albert Einstein
Sometimes we forget the simplest trick to create wealth – and Albert Einstein, 1921 Nobel laureate in physics, couldn’t have said it better. Compounding is a powerful tool that can help you build wealth over time. By starting early, being consistent, and reinvesting your earnings, you can make your money work for you. Remember, the key is patience and understanding that small, regular investments can lead to significant growth in the long run.
10. "The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
The original pioneer of growth investing, in this quote Phillip Fisher highlights an important point: investing without proper education and research can lead to poor decisions. Many people know the price of stocks but don't understand their true value. Research goes beyond just following popular opinions; it involves digging deeper to understand what makes a company valuable. By doing your homework and learning about the fundamentals, you can make smarter investment choices and avoid common pitfalls.
Philip Fisher was a renowned investment strategist and author of Common Stocks and Uncommon Profits. Greatest investing minds, including Warren Buffett, have been influenced by Fisher's strategies and thinking.
Conclusion
To wrap up, these quotes highlight essential tips like being patient, learning continuously, having a solid plan, doing your research and managing risks wisely. Whether you're just starting out or have been investing for years, if you can understand the essence of these quotes, and implement the pearls of wisdom to your investment strategy you will be set for success! Remember, the journey of investing is as much about personal growth as it is about financial gain.