What Stock Is Motley Fool Saying Is the Next Amazon
When it comes to the world of investing, most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance. These investment quotes date back to Benjamin Franklin, and some are from modern experts like Dave Ramsey and Warren Buffett. The 25 quotes here were selected for their enduring value. Although markets may change, this investing advice is timeless.
Key Takeaways
- Timeless financial quotes give investors a better perspective on the future by conveying wisdom from the past.
- The best stock market quotes teach investors how success in the market depends on playing the odds instead of following natural instincts.
- Investment and wealth quotes show how to build a fortune in the long-run and spend it wisely.
- The top investing quotes from contrarians tell investors how they can profit by going against popular opinion.
Timeless Financial Quotes
1. "An investment in knowledge pays the best interest." — Benjamin Franklin
When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research and analysis before making any investment decisions.
2. "Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows." — Jim Rogers
While 10- to 15-year lows are not common, they do happen. During these times, don't be shy about going against the trend and investing; you could make a fortune by making a bold move or lose your shirt. Remember the first quote in this article and invest in an industry you've researched thoroughly. Then, be prepared to see your investment sink lower before it turns around and starts to pay off.
3. "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." — Warren Buffett
Be prepared to invest in a down market and to "get out" in a soaring market, as per the philosophy of Warren Buffett.
4. "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
It's far too easy for investors to lose perspective. Whenever something big goes wrong, a lot of people panic and sell their investments. Looking at history, the markets recovered from the 2008 financial crisis, the dotcom crash, and even the Great Depression, so they'll probably get through whatever comes next as well.
Best Stock Market Quotes
5. "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
Too many investors become obsessed with being right, even when the gains are small. Winning big and cutting your losses when you're wrong are more important than being right.
6. "Given a 10% chance of a 100 times payoff, you should take that bet every time." — Jeff Bezos
Most people dismiss many of the best and most profitable investment ideas simply because they probably won't work. These investors never stop to consider how much they could make if unlikely outcomes actually occur. Jeff Bezos took those bets and became the richest person in the world.
7. "Don't look for the needle in the haystack. Just buy the haystack!" — John Bogle
If it seems too hard to find the next Amazon, John Bogle came up with the only sure way to get in on the action. By buying an index fund, investors can put a little bit of money into every stock. That way, they never miss out on the stock market's biggest winners.
8. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." — Warren Buffett
Investors often make things too hard for themselves. The value stocks that Buffett prefers frequently outperform the market, making success easier. Supposedly sophisticated strategies, such as short selling, lose money in the long-run, so profiting is much more difficult.
9. "The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
That is another testament to the fact that investing without an education and research will ultimately lead to regrettable investment decisions. Research is much more than just listening to popular opinion.
10. "In investing, what is comfortable is rarely profitable." — Robert Arnott
At times, you will have to step out of your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? Or getting out during the biggest rally of the century? There's no room for pride in this kind of self-analysis. The best investment strategy can turn into the worst if you don't have the stomach to see it through.
11. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen
Though investing in a savings account is a sure bet, your gains will be minimal due to the extremely low interest rates. But don't forgo one completely. A savings account is a reliable place for an emergency fund, whereas a market investment is not.
12. "If there is one common theme to the vast range of the world's financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." — Carmen Reinhart
Beware of debts that seem sensible during periods of prosperity. When a crisis comes, individuals, companies, and even governments that ran up debts during the boom usually suffer the most.
13. "We don't prognosticate macroeconomic factors, we're looking at our companies from a bottom-up perspective on their long-run prospects of returning." — Mellody Hobson
It's very difficult to predict when the next recession or stock market crash will come, so many of the best investors don't even try. Instead, look for good companies with the strength to make it through the occasional challenging economic environment.
14. "Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off." — Carlos Slim Helu
Don't despair amid the inevitable setbacks that all investors face, especially during a crisis in the market. If the reasoning behind the investment was sound, stick with it, and it should eventually turn around.
15. "The individual investor should act consistently as an investor and not as a speculator." — Ben Graham
You are an investor, not someone who can predict the future. Base your decisions on real facts and analysis rather than risky, speculative forecasts.
Investment and Wealth Quotes
16. "The biggest risk of all is not taking one." — Mellody Hobson
There is a direct tradeoff between risk and returns. If investors stick to low-risk assets like the money market and bonds, then they run a high risk of low long-term returns.
17. "Returns matter a lot. It's our capital." — Abigail Johnson
The long-run rate of return on investments ultimately determines how much wealth people accumulate over time. Always look at returns when considering mutual funds or exchange-traded funds (ETFs).
18. "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." — Robert Kiyosaki
If you're a millionaire by the time you're 30 but blow it all by age 40, you've gained nothing. Grow and protect your investment portfolio by carefully diversifying it, and you may find yourself funding many generations to come.
19. "Know what you own, and know why you own it." — Peter Lynch
Do your homework before making a decision. Once you've made a decision, make sure to re-evaluate your portfolio on a timely basis. A wise holding today may not be a wise holding in the future.
20. "Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." — Dave Ramsey
By being modest in your spending, you can ensure you will have enough for retirement and can give back to the community as well.
21. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson
If you think investing is gambling, you're doing it wrong. The work involved requires planning and patience. However, the gains you see over time are indeed exciting.
Many of the best quotes about investing urge thoughtfulness over impulsiveness, boldness instead of caution, and smart research over flavor-of-the-month decision making.
Top Investing Quotes from Contrarians
22. "The four most dangerous words in investing are, it's different this time." — Sir John Templeton
Follow market trends and history. Don't speculate that this particular time will be any different. For example, a major key to investing in a specific stock or bond fund is its performance over five years.
23. "Wide diversification is only required when investors do not understand what they are doing." — Warren Buffett
In the beginning, diversification is relevant. However, there are dangers of over-diversifying your portfolio. Once you've gotten your feet wet and have confidence in your investments, you can adjust your portfolio accordingly and make bigger bets.
24. "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." — Peter Lynch
When hit with recessions or declines, you must stay the course. Economies are cyclical, and the markets have shown that they will recover. Make sure you are a part of those recoveries.
25. "The most contrarian thing of all is not to oppose the crowd but to think for yourself." — Peter Thiel
The Bottom Line
The world of investing can be cold and hard. Refer back to these quotes when you're feeling shaky or confused about investing. How are they relevant to your experience? Do you have any favorite quotes to add? Is there something you're overlooking that you could be doing differently? Whenever everything seems too tough, remember the words of Colin Powell, "A dream doesn't become reality through magic; it takes sweat, determination, and hard work."
What Stock Is Motley Fool Saying Is the Next Amazon
Source: https://www.investopedia.com/financial-edge/0511/the-top-17-investing-quotes-of-all-time.aspx
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