Quotes

Wisdom of Great Investors – Quotes

1) “Rule #1: Don’t lose money. Rule #2: Don’t forget Rule #1.” – Warren Buffett

2) “Buy not on optimism, but on arithmetic.” – Benjamin Graham

3) “Minimizing downside risk while maximizing the upside is a powerful concept.” – Mohnish Pabrai

4) “Spend each day trying to be a little wiser than you were when you woke up.” – Charlie Munger

5) “The desire to perform all the time is usually a barrier to performing over time.” – Robert Olstein

6) “Risk comes from not knowing what you’re doing.”  – Warren Buffett

7) “If we buy the business as a business and not as a stock speculation, then it becomes personal. I want it to be personal. – Phil Town

8) “We don’t have an analytical advantage, we just look in the right place.” – Seth Klarman

9) “No wise pilot, no matter how great his talent and experience, fails to use his checklist.” – Charlie Munger

10) “I love quotes… but in the end, knowledge has to be converted to action or it’s worthless.” – Tony Robbins

11) “It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

12) “The secret to investing is to figure out the value of something – and then pay a lot less.” Joel Greenblatt

13) “It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” – Charlie Munger

14) “Behind every stock is a company. Find out what it’s doing.” – Peter Lynch

15) “Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett

Read: 50 Warren Buffett Quotes on Investing and Life

16) “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.” – Martin Whitman

17) “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein

18) “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

19) The individual should act consistently as an investor and not as a speculator.” Benjamin Graham

20) “The entrance strategy is actually more important than the exit strategy.” – Edward Lampert

21) “In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.” – Low Simpson

22) “The ability to focus attention on important things is a defining characteristic of intelligence.” – Robert J. Shiller

23) “Invest for the long-term.” – Lou Simpson

24) “Rapidly changing industries are the enemy of the investor.” – Mohnish Pabrai

25) “The easiest way to manage your money is to take it one step at a time and not worry about being perfect.” – Ramit Sethi

26) “The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Phillip Fisher

27) “Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part ownership of a business.” – Peter Lynch

28) “All intelligent investing is value investing. Aquiring more that you are paying for. You must value the business in order to value the stock.” – Charlie Munger

29) “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

30) “When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town

Be Patient and Think Long-Term

“Invest for the long haul. Don’t get too greedy and don’t get too scared.”

Shelby M.C. Davis

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”

Benjamin Graham

“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.”

Charlie Munger

“The stock market is a device to transfer money from the impatient to the patient.”

Warren Buffett

Keep Emotions in Check

“The investor’s chief problem—and his worst enemy—is likely to be himself. In the end, how your investments behave is much less important than how you behave.”

Benjamin Graham

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.”

Charlie Munger

“Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.”

Jack Bogle

Disregard Short-Term Forecasts

“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.”

Peter Lynch

“The function of economic forecasting is to make astrology look respectable.”

John Kenneth Galbraith

“I make no attempt to forecast the market—my efforts are devoted to finding undervalued securities.”

Warren Buffett

Don’t Try to Time the Market

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

Peter Lynch

“The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently. I don’t even know anybody who knows anybody who has.”

Jack Bogle

“Though tempting, trying to time the market is a loser’s game. $10,000 continuously invested in the market over the past 20 years grew to more than $48,000. If you missed just the best 30 days, your investment was reduced to $9,900.1

Christopher Davis

Markets Fluctuate. Stay the Course.

“History provides a crucial insight regarding market crises: they are inevitable, painful and ultimately surmountable.”

Shelby M.C. Davis

“A 10% decline in the market is fairly common—it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks.”

Christopher Davis

“In the short run, the market is a voting machine. In the long run, it is a weighing machine.”

Benjamin Graham

A Market Correction is an Opportunity

“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.”

Warren Buffett

“The intelligent investor is a realist who sells to optimists and buys from pessimists.”

Benjamin Graham

“You make most of your money in a bear market, you just don’t realize it at the time.”

Shelby Cullom Davis

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