1. “An investment in knowledge pays the
best interest.” – Benjamin Franklin
When it comes to investing, nothing will
pay off more than educating yourself. Do
the necessary research, study and
analysis before making any investment
decisions.
2. “Bottoms in the investment world don’t
end with four-year lows; they end with
10- or 15-year lows.” – Jim Rogers
While 10-15 year lows are not common,
they do happen. During these down times,
don’t be shy about going against the trend
and investing; you could make a fortune
by making a bold move – or lose your
shirt. Remember quote #1 and invest in
an industry you’ve researched thoroughly.
Then, be prepared to see your investment
sink lower before it turns around and
starts to pay off.
3. “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
Be prepared to invest in a down market
and to “get out” in a soaring market. (For
more, read Think Like Warren Buffett . )
4. “The stock market is filled with
individuals who know the price of
everything, but the value of nothing.” –
Phillip Fisher
Another testament to the fact that
investing without an education and
research will ultimately lead to regrettable
investment decisions. Research is much
more than just listening to popular
opinion.
5. “In investing, what is comfortable is
rarely profitable.” – Robert Arnott
At times, you will have to step out of your
comfort zone to realize significant gains.
Know the boundaries of your comfort
zone and practice stepping out of it in
small doses. As much as you need to
know the market, you need to know
yourself too. Can you handle staying in
when everyone else is jumping ship? Or
getting out during the biggest rally of the
century? There’s no room for pride in this
kind of self-analysis. The best investment
strategy can turn into the worst if you
don’t have the stomach to see it through.
6. “How many millionaires do you know
who have become wealthy by investing in
savings accounts? I rest my case.” –
Robert G. Allen
Though investing in a savings account is
a sure bet, your gains will be minimal
given the extremely low interest rates. But
don’t forgo one completely. A savings
account is a reliable place for an
emergency fund, whereas a market
investment is not. (To learn more, see
Savings Accounts Not Always The Best Place
For Cash Assets
.)
7. “Invest in yourself. Your career is the
engine of your wealth.” – Paul Clitheroe
We all want wealth, but how do we
achieve it? It starts with a successful
career which relies on your skills and
talents. Invest in yourself through school,
books, or a quality job where you can
acquire a quality skill set. Identify your
talents and find a way to turn them into
an income-generating vehicle. In doing so,
you can truly leverage your career into an
“engine of your wealth.”
8. “Every once in a while, the market
does something so stupid it takes your
breath away.” – Jim Cramer
There are no sure bets in the world of
investing; there is risk in everything. Be
prepared for the ups and downs. (To read
more on how Cramer makes his pick, see
Cramer’s ‘Mad Money’ Recap: Tools of the
Trade
. )
9. “The individual investor should act
consistently as an investor and not as a
speculator.” – Ben Graham
You are an investor, not someone who
can predict the future. Base your
decisions on real facts and analysis rather
than risky, speculative forecasts.
10. “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
If you’re a millionaire by the time you’re
30, but blow it all by age 40, you’ve
gained nothing. Grow and protect your
investment portfolio by carefully
diversifying it, and you may find yourself
funding many generations to come.
11. “Know what you own, and know why
you own it.” – Peter Lynch
Do your homework before making a
decision. And once you’ve made a
decision, make sure to re-evaluate your
portfolio on a timely basis. A wise holding
today may not be a wise holding in the
future.
12. “Financial peace isn’t the acquisition
of stuff. It’s learning to live on less than
you make, so you can give money back
and have money to invest. You can’t win
until you do this.” – Dave Ramsey
By being modest in your spending, you
can ensure you will have enough for
retirement and can give back to the
community as well.
13. “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
If you think investing is gambling, you’re
doing it wrong. The work involved
requires planning and patience. However,
the gains you see over time are indeed
exciting! (For more reasons to be patient,
check out Patience Is A Trader’s Virtue . )
14. “I would not pre-pay. I would invest
instead and let the investments cover it.”
– Dave Ramsey
A perfect answer to the question: “Should
I pay off my _____(fill in the blank) or
invest for retirement?” That said, a credit
card balance ringing up 30% can turn into
a black hole if not paid off quickly.
Basically, pay off debt at high interest
rates and keep debt at low ones.
15. “The four most dangerous words in
investing are: ‘this time it’s different.'” –
Sir John Templeton
Follow market trends and history. Don’t
speculate that this particular time will be
any different. For example, a major key to
investing in a particular stock or bond
fund is its performance over five years.
Nothing shorter.
16. “Wide diversification is only required
when investors do not understand what
they are doing.” – Warren Buffett
In the beginning, diversification is
relevant. Once you’ve gotten your feet wet
and have confidence in your investments,
you can adjust your portfolio accordingly
and make bigger bets. (For more reason
to reduce your diversification, read The
Dangers Of Over-Diversifying Your Portfolio
. )
17. “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.”
– Peter Lynch
When hit with recessions or declines, you
must stay the course. Economies are
cyclical, and the markets have shown that
they will recover. Make sure you are a part
of those recoveries!
The Bottom Line
The world of investing can be cold and
hard. But if you do thorough research and
keep your head on straight, your chances
of long-term success are good. Refer
back to these quotes when you’re feeling
shaky or are confused about investing.
How are they relevant to your experience?
Do you have any favorite quotes to add?
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