... a speculator is one who runs risks of which he is aware and an investor is one who runs risks of which he is unaware.
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.
Most businesses change in character and quality over the years, sometimes for the better, perhaps more often for the worse. The investor need not watch his companies' performance like a hawk; but he should give it a good, hard look from time to time.
Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.
Investors have very short memories
In this age of electronic money, investors are no longer seduced by a financial 'dance of a thousand veils.' Only hard and accurate information on reserves, current accounts, and monetary and fiscal conditions will keep capital from fleeing precipitously at the first sign of trouble.
An investor should act as though he had a lifetime decision card with just twenty punches on it.
The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.
If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.
Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.
At age 19, I read a book [The Intelligent Investor] and what I'm doing today, at age 76, is running things through the same thought process I learned from the book I read at 19.
Defaulting on the nation's debt would be cataclysmic. The U.S. Treasury's Aaa rating is the one constant in the world's financial system. When times are bad anywhere on the planet, global investors flock to Treasury bonds because they know they will get their money back.
My favorite pre-Ponzi schemer was known as '520 Percent Miller' because he promised 10 percent returns a week, or 520 percent a year. Of course he was just using new investors' money to pay old investors, and soon he was on the lam.
Greed has no boundaries
When markets go down, opportunities go up for smart real estate investors. I would much rather play the downturn than the upturn.
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
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
All an investor can do is follow a consistently disciplined and rigorous approach; over time the returns will come
They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up.
Volatility may be rising simply because investors must digest more information every day.
The distribution of the market is fat-tailed relative to the normal distribution... For passive investors, none of this matters, beyond being aware that outlier returns are more common than would be expected if return distributions were normal.
Wide diversification is only required when investors do not understand what they are doing.
Based on my own personal experience – both as an investor in recent years and an expert witness in years past – rarely do more than three or four variables really count. Everything else is noise.
A pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street (a community in which quality control is not prized) will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.
The trick of successful investors is to sell when they want to, not when they have to.
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