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There’s a bewildering amount of advice on how to invest…so it’s worthwhile, especially in today’s volatile markets, to take a look at what has actually worked, as opposed to what people claim works. We’ve collected some of the finest wisdom on markets from the most respected and successful investors, past and present. Words: 865
So says Max Nisen (www.businessinsider.com) in his latest post* which is brought to you courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in any article re-posting to avoid copyright infringement.
Here they are:
1. John Templeton:
“The four most dangerous words in investing are ‘This time it’s different.'” Source: Marketwatch
2. Barton Biggs:
“Quantitatively based solutions and asset allocation equations invariably fail as they are designed to capture what would have worked in the previous cycle whereas the next one remains a riddle wrapped in an enigma.” Source: Barton Biggs via The Gartman Letter
3. Benjamin Graham:
“It is absurd to think that the general public can ever make money out of market forecasts.” Source: The Intelligent Investor
4. Jack Bogle:
“If you have trouble imaging a 20% loss in the stock market, you shouldn’t be in stocks.” Source: ritholtz.com
5. Philip Fisher:
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” Source: Investopedia
6. Warren Buffett:
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.” Source: 2004 shareholder letter
7. Bob Farrell:
“The public buys the most at the top and the least at the bottom” Source: Marketwatch
8. Jeremy Grantham:
“By far the biggest problem for professionals in investing is dealing with career and business risk: protecting your own job as an agent. The second curse of professional investing is over-management caused by the need to be seen to be busy, to be earning your keep. The individual is far better-positioned to wait patiently for the right pitch while paying no regard to what others are doing, which is almost impossible for professionals.”
Source: GMO
9. Charles Ellis:
“The average long-term experience in investing is never surprising, but the short term experience is always surprising. We now know to focus not on rate of return, but on the informed management of risk” Source: Winning The Loser’s Game
10. Bill Miller:
“The market does reflect the available information, as the professors tell us. But just as the funhouse mirrors don’t always accurately reflect your weight, the markets don’t always accurately reflect that information. Usually they are too pessimistic when it’s bad, and too optimistic when it’s good.” Source: 2006 Letter to Shareholders
11. Ken Fisher:
“You can’t develop a portfolio strategy around endless possibilities. You wouldn’t even get out of bed if you considered everything that could possibly happen….. you can use history as one tool for shaping reasonable probabilities. Then, you look at the world of economic, sentiment and political drivers to determine what’s most likely to happen—while always knowing you can be and will be wrong a lot.” Source: Markets Never Forget (But People Do)
12. George Soros:
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” Source: Winning Investment Habits Of Warren Buffet And George Soros
13. Thomas Rowe Price Jr.:
“Every business is manmade. It is a result of individuals. It reflects the personalities and the business philosophy of the founders and those who have directed its affairs throughout its existence. If you want to have an understanding of any business, it is important to know the background of the people who started it and directed its past and the hopes and ambitions of those who are planning its future.” Source: Valuewalk
14. Carl Icahn:
“We have bloated bureaucracies in Corporate America. The root of the problem is the absence of real corporate democracy.” Source: The Icahn Report
15. Peter Lynch:
“Investing without research is like playing stud poker and never looking at the cards.” Source: One Up On Wall Street
16. John Neff:
“It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.” Source: John Neff On Investing
17. Henry Kravis:
“If you don’t have integrity, you have nothing. You can’t buy it. You can have all the money in the world, but if you are not a moral and ethical person, you really have nothing.” Source: Academy of Achievement
18. Ray Dalio:
“An economy is simply the sum of the transactions that make it up. A transaction is a simple thing. Because
there are a lot of them, the economy looks more complex than it really is. If instead of looking at it from the
top down, we look at it from the transaction up, it is much easier to understand.” Source: How The Economic Machine Works
*http://www.businessinsider.com/best-advice-worlds-greatest-investors-2012-7
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