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Investment is a field which offers people tremendous amounts of learnings. You can either come by these learnings through your own experience or read and understand the knowledge shared by legendary investors. While the first route may end up burning you in the quest for knowledge, adhering to the wisdom shared by investment greats will help you navigate the confusing landscape in a more efficient and optimal manner. If you are wondering about the different quotes on investments, let us go through some of the major ones that every investr worth their salt must know.
Different quotes on investments – Warren Buffett
If you are asked to name a popular investor, chances are you will zero in on Warren Buffett, one of the most influencial investment gurus of our time. Not only is Buffett an exceptional investor but he is also a fount of wisdom when it comes to winning at the investment game. Here are some of his most valuable quotes –
1. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
This famous quote by Warren Buffett encapsulates the essence of the investment scenario – you must be ready to invest in a market which is falling and willing to sell off and make profits in a market which is rising strongly. While this may sound counter-intuitive, let us consider the logic behind this quote. Markets are cyclical in nature – if there is a crash, it will be followed by a rise, and vice versa. Therefore, if you buy strong stocks when the market is down, and sell them when the market is on an upswing, you will end up making substantially more profit that someone who sells when the market is down and buys when the stakes are high.
This famous quote by Warren Buffett encapsulates the essence of the investment scenario – you must be ready to invest in a market which is falling and willing to sell off and make profits in a market which is rising strongly. While this may sound counter-intuitive, let us consider the logic behind this quote. Markets are cyclical in nature – if there is a crash, it will be followed by a rise, and vice versa. Therefore, if you buy strong stocks when the market is down, and sell them when the market is on an upswing, you will end up making substantially more profit that someone who sells when the market is down and buys when the stakes are high.
2.“The most important quality for an investor is temperament, not intellect.”
This is another excellent quote by Buffett, the CEO of Berkshire Hathaway, which indicates his keen understanding of the human psyche. Buffett has long maintained that there is no place for emotional bias when it comes to investing. If you fall prey to fear or greed, you will end up losing a substantial amount of money. This quote focuses on the importance of staying logical in your investment decisions – it does not matter whether you are extremely intelligent or not, as long as you are not falling prey to illogical and emotional decisions, your investment journey will remain successful.
Different quotes on investments – Ben Graham
Known as the father of value investing, and credited as an economist who greatly influenced Warren Buffett, Ben Graham’s quotes offer us strong learnings on the investment scenario.
1. “The individual investor should act consistently as an investor and not as a speculator.”
A man of few yet precise words, Graham here stresses the importance of basing your investment decisions on hard facts and analysis, rather than just speculating about and forecasting future stock movements. If there is one thing you should know, it is that the market is not predictable. Therefore, do not focus on speculation. Rather, take steps to understand the underlying facts and go with wise decisions.
2. “Those who do not remember the past are condemned to repeat it.”
Here, Graham speaks of the imperative nature of history and investments. If you do not learn from the mistakes of those who came before you, you will end up repeating them and making unnecessary losses. So, keep an eye on the past as well as the future.
Different quotes on investments – Philip Fisher
Through sound experience and analysis of the great investing minds, author and investor Phillip Fisher brings readers this gem of a quote.
1. “The stock market is filled with individuals who know the price of everything, but the value of nothing.”
This is an exceptionally powerful quote as it tells us that it is more important to focus on the underlying value of an asset, rather than just knowing and considering its price. Unless you have researched or analysed the company, and its future prospects, you would not be able to zero in on the actual value of the stock.
2. “Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others which they know nothing about.”
We have all heard about the importance of diversification but do you know that over-diversification is a bane? If you start putting your money into all kinds of diverse sectors, it will become difficult for you to manage your investments while also limiting the scope of potential returns on any one sector. Therefore, always invest in sectors you are confident about and control your urge to spread yourself too thin.
Let us end with a very strong quote by American investor Peter Lynch, “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.” So, study the market and understand the basics before starting your investment journey.
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