Investing Quotes - Page 21

• After a lifetime of picking stocks, I have to admit that Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him. Bogle's wisdom and common sense are indispensable... for anyone trying to figure out how to invest in this crazy stock market.

  Jim Cramer

  Crazy, Thinking, Common Sense

  15 Copy quote

• First, those who disagree with market efficiency simply assert that it stands to common sense that greater effort to get facts and greater acumen in analyzing those facts will pay off in better performance somehow measured. (By this logic, cure for cancer must have been found by 1955).

  Paul Samuelson

  Cancer, Common Sense, Effort

  8 Copy quote

• Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.

  Warren Buffett

  Knowing, Long, Risk

  28 Copy quote

• Investment based on genuine long-term expectations is so difficult today as to be scarcely practicable.

  John Maynard Keynes

  Long, Expectations, Today

  6 Copy quote

• Confidence in a forecast rises with the amount of information that goes into it. But the accuracy of the forecast stays the same.

  Dean Williams

  Information, Accuracy, Amount

  6 Copy quote

• My main life lesson from investing: self-interest is the most powerful force on earth, and can get people to embrace and defend almost anything.

  Jesse Lauriston Livermore

  Powerful, Life Lesson, Self

  27 Copy quote

• Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding human behavior. We stuck to the basics with a certain amount of discipline and it has worked out quite well.

  Charlie Munger

  Horse, Discipline, Diagnosis

  13 Copy quote

• Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.

  Merton Miller

  Thinking, People, Might

  "Investment Gurus: A Road Map to Wealth from the World's Best Money Managers" by Peter J. Tanous, (p. 269), 1999.

  7 Copy quote

  Show source

• We have not known a single person who has consistently or lastingly make money by thus "following the market". We do not hesitate to declare this approach is as fallacious as it is popular.

  Benjamin Graham

  Making Money, Approach, Single Person

  Benjamin Graham (2009). “The Intelligent Investor, Rev. Ed”, p.3, Harper Collins

  12 Copy quote

  Show source

• For 99 issues out of 100 we could say that at some price they are cheap enough to buy and at some price they would be so dear that they would be sold.

  Benjamin Graham

  Issues, Would Be, Enough

  Benjamin Graham (2009). “The Intelligent Investor, Rev. Ed”, p.8, Harper Collins

  9 Copy quote

  Show source

• If you roll dice, you know that the odds are one in six that the dice will come up on a particular side. So you can calculate the risk. But, in the stock market, such computations are bull - you don't even know how many sides the dice have!

  Nassim Nicholas Taleb

  Odds, Risk, Bulls

  7 Copy quote

• History doesn't crawl; it leaps.

  Nassim Nicholas Taleb

  Leap

  5 Copy quote

• Charlie and I have a number of filters that things have to get through before we'll think about them.

  Warren Buffett

  Thinking, Numbers, Filters

  7 Copy quote

• To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.

  Benjamin Graham

  Wall, Average, Sound

  Benjamin Graham (2009). “The Intelligent Investor, Rev. Ed”, p.31, Harper Collins

  12 Copy quote

  Show source

• You never know what the American public is going to do, but you know that they will do it all at once.

  L. William Seidman

  Knows

  4 Copy quote

• Calculate a stock's price/earnings ratio yourself, using Graham's formula of current price divided by average earnings over the past three years.

  Benjamin Graham

  Past, Average, Years

  Benjamin Graham (1965). “The Intelligent Investor: A Book of Practical Counsel”, p.120, Prabhat Prakashan

  8 Copy quote

  Show source

• It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment.

  Benjamin Graham

  Opportunity, Practice, Safety

  11 Copy quote

• The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.

  Benjamin Graham

  Safety, Miscalculations, Higher

  Benjamin Graham (1959). “The Intelligent Investor: A Book of Practical Counsel”

  17 Copy quote

  Show source

• It's nonsensical to derive a price/earnings ratio by dividing the known current price by unknown future earnings.

  Benjamin Graham

  Ratios, Earning, Nonsensical

  9 Copy quote

• The considerations upon which expectations of prospective yields are based are partly existing facts which we can assume to be known more or less for certain, and partly future events which can only be forecasted with more or less confidence.

  John Maynard Keynes

  Yield, Expectations, Facts

  John Maynard Keynes (2006). “General Theory Of Employment , Interest And Money”, p.132, Atlantic Publishers & Dist

  11 Copy quote

  Show source

• If Bill Gates woke up with Oprah's money he'd jump out the window.

  Chris Rock

  Bills, Window, Gates

  9 Copy quote

• Surprise! The returns reported by mutual funds aren't actually earned by mutual fund investors.

  John C. Bogle

  Return, Surprise, Mutual Fund

  John C. Bogle (2010). “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns”, p.48, John Wiley & Sons

  43 Copy quote

  Show source

• You've got to have models in your head and you've got to array you experience - both vicarious and direct - onto this latticework of mental models.

  Charlie Munger

  Vicarious, Models, Direct

  13 Copy quote

• A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind, loving diagnosis involving multiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and patience in the past.

  Charlie Munger

  Past, Opportunity, Odds

  17 Copy quote

• I think I've been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I've underestimated it.

  Charlie Munger

  Thinking, Understanding, Age

  8 Copy quote