5 Great Investment Quotes with Timeless Insight for Tough Markets
Over the years, legendary investors like Benjamin Graham, Warren Buffett, Peter Lynch, and Sir John Templeton have provided investment insights based on a lifetime of mastering the craft. Here are just a few to keep ever present:
1. “Rule Number One: Don’t Lose Money. Rule Number Two: Don’t Forget Rule Number One.” - Warren Buffett
The counterintuitive point for many investors to keep in mind is that investment risk isn’t about how much can be gained;
it’s about how much can be lost.
2. “The Ěost Émportant Quality for an Investor Is Temperament, not Intellect.” - Warren Buffett
Deciphering and mastering the investment world isn’t about quant models and mathematical genius.
It’s about having profound respect for Mr. Market’s ultimate weapon of choice… human behavior.
3. “The Four Most Dangerous Words in Investing: ‘This Time It’s Different.’” - Sir John Templeton
This is one of the most important quotes in investment history.
Unfortunately, it’s often misunderstood.
Of course, things are always different from one era to the next, but what does not change from era to era is human behavior and the formation of market extremes.
4. “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
Many smart individuals mistakenly fall for the premise that complexity is a key component to superior performance.
Wall Street’s product industry has cultivated and reinforced this fallacy for generations. In fact, nothing could be further from the truth.
5. “It Would be Wonderful if We Could Avoid the Common Setbacks with Timely Exits.” – Peter Lynch
Stocks have historically provided long-term returns far better than bonds or cash but there is a price to pay.
And that cost is realized in meaningless short-term market swings that can and will frustrate even the most seasoned of investors.