Best Investment Quotes
Getting into the world of investment is not an easy task. You need to consider a lot of things and there’s no shortage of risk as you go along. Regardless of the tough road ahead, you should persevere with your journey. After all, a lot of successful investors are now enjoying a luxurious life. If they did it, so can you.
To get you inspired and motivated, here are some of the best investment quotes that you can use when you feel that the going gets tough.
“An investment in knowledge pays the best interest.” – Benjamin Franklin
Knowledge plays a very important role in our life. It can help you make better decisions, perform better and help you make more money. Knowledge couldn’t be more important when it comes to investment. To make better investment decisions, you have to do your research first and immerse yourself with as much relevant information as you can.
Benjamin Franklin understands the value of being constantly hungry for knowledge. You should always educate yourself through investment magazines, books, audiobooks, etc. In the end, no one would benefit the investment that you make in yourself but you. With tons of knowledge, you’ll be able to analyze all your options and make better decisions.
Read at least 30 minutes a day and study the lives of other successful investors. It’s also helpful if you watch biographies to understand how other people made it big in the investment world.
“Rule number one: Don’t lose money. Rule number two: Don’t forget rule number one.” — Warren Buffet
Investing in the stock market is not a place for gamblers to bet their money and hope to go home with pockets full of cash.
When looking to invest your hard earned money into the market, rather than thinking of how much you will gain, consider how much you might lose first. When you lose money, the remaining funds have to perform much better to regain your losses. That is why successful investors focus on risk first instead of returns.
Though admittedly, losses are an inevitable aspect of any investing. Even acclaimed investors like Warren Buffett had their fair share of losses. But always remember that what makes them great investors is that they rarely take on big losses.
To avoid losing money in the stock market, conduct research to identify the market phase. In other words, observe the market patterns first before making a decision. The goal is to buy low and sell high. Additionally, don’t buy a stock just because it performed well in the past. It may have yielded great returns last year but there is no guarantee that it will do the same this year.
Learn to understand the fundamentals of the business’ stock you are about to purchase (how it makes its money, it’s competitive landscape, it’s valuation, how others perceive it, etc).
“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.” – John Neff
Many people like to invest in well known “blue chip” stocks and put their life’s savings there. While this may sound like a wise decision, you should not just focus your time looking into these types of stocks. Underdogs are still present even in today’s market.
With proper research, you can find a diamond in the rough through some stocks that are less popular. If you see an opportunity on a stock that has a strong path to future profits, invest in it. John Neff credits his success in putting his investment on the not-so-popular stocks.
“There seems to be an unwritten rule on Wall Street: If you don’t understand it, then put your life savings into it.” – Peter Lynch
One of the biggest fallacies in Wall Street is that complexity is an important component of superior performance. A lot of investors are guilty falling for that.
As a matter of fact, complex investment strategies often don’t perform well. They may sound as prestigious and promising, but most of these investment strategies are designed to benefit those that manage and promote it.
Regardless if you are a novice or an experienced investor, the best option for you is investments that are transparent and straightforward.
“In investing, what is comfortable is rarely profitable.” – Robert Arnott
You are more likely to achieve greatness when you step out of your comfort zone and try things that you never thought you could do. You get to unleash a different strength and skills that you thought you never possessed. It’s only when you push yourself harder that you get to know your full potential.
It’s also the same with investing. Sure, investing in a safe stock may sound like a smart idea. But when almost everyone is investing in the same stock, would be it as much profitable? If you want to realize a significant gain, then you must be brave enough to jump out of your comfort zone. Have the courage to jump ship when everyone was staying.
“Every once in a while, the market does something so stupid it takes your breath away.” – Jim Cramer
The investment world is not guaranteed. You may be cashing in huge investment returns this month, however, it could be a different story next month. There is always a risk in everything and stocks could crumble in hours.
One of the most important traits that you must possess as an investor is adaptability. You should be resilient enough to stand strong yet you must also be flexible enough to embrace new angles. This way, you don’t get buried when the stock market does something crazy. Get up and think of a new strategy. Winners don’t quit in times of adversity.
“The most important quality for an investor is temperament, not intellect.” – Warren Buffett
You don’t need to be a mathematical genius to prosper in the investment world. You just need to understand and respect the ultimate weapon of the stock market which is human behavior.
A lot of investors get trapped in the mistake of not appreciating the behavioral aspects of investing. The biggest problem and worst enemy of an investor are himself. So rather than studying quant models to decipher and master the investment world, you must understand the emotions, instincts, and tendencies of investment behavior.
“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
You may be able to make a lot of money in your investment ventures, but the real question is this: How much of these earnings are you able to keep? You may have reached your first million at the age of 30 but it’s worthless when you blow it all by the age of 40.
Your goal should not just be focused on your earnings but also on the maintenance and sustainability of these earnings. Carefully diversify your investment portfolio and make it grow. Work hard to achieve financial security not just in your current generation but also for many generations to come.
And along those lines, make sure you learn tax rules and get a strong accountant. There is no reason to make large profits if the tax man collects it all.
“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
Investment is not about placing your bet on a card and feeling the rush of excitement as you wait if you win or lose.
Instead, it requires careful planning and meticulously evaluating all the possible angles. This may sound boring for some adrenaline-driven individuals, however, nothing beats the rush of excitement when you see your gains over time.
The investment world can sometimes be cold and brutal. Thankfully, great investors of the past and present have shared wise and useful nuggets of inspirational quotes. Whenever you feel shaken, discouraged or stuck, refer back to these quotes and get back on your feet again.
The Ultimate Book of Investment Quotations by Dean LeBaron is a collection of quotes that can help you gain investment wisdom.