Investing in the financial markets is serious business!
While a multitude of investors has participated in the financial/stock markets through time, only a few are remembered for their outstanding success and contributions to the great foundation, and what we know today of the โartโ and โscienceโ of investing.
These great investors and traders tamed bull and bear markets, mastered their ever-present behavioural biases (emotions), and their legendary insights can teach all of us something about how to create wealth, succeed in the investment world, and in life!
Below are some of the greatest investment quotes, sayings, and lessons, of all time.
Warren Buffett Investment Quotes
Business Magnate, Investor, Philanthropist, and Chairman/CEO of Berkshire Hathaway. His writings include โ The Essays of Warren Buffett: Lessons For Corporate America.
โYouโre dealing with a lot of silly people in the marketplace; itโs like a great big casino and everyone else is boozing. If you can stick with Pepsi, you should be O.K.โ
โWeโve long felt that the only value of stock forecasters is to make fortune-tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.โ
โIn a bull market, one must avoid the error of the preening duck that quacks boastfully after a torrential rainstorm, thinking that its paddling skills have caused it to rise in the world. A right-thinking duck would instead compare its position after the downpour to that of the other ducks on the pond.โ
โInvestors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.
โWide diversification is only required when investors do not understand what they are doing.โ
โLong ago, Ben Graham taught me that โPrice is what you pay; value is what you get.โ Whether weโre talking about socks or stocks, I like buying quality merchandise when it is marked down.โ
โYou donโt need to have a high IQ in the investment business, but you do need emotional control.โ
โThe difference between successful people and very successful people is that very successful people say โnoโ to almost everything.โ
โWall Street makes its money on activity. You make your money on inactivity.โ
โRemember that the stock market is a manic depressive.โ
โCalling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.โ
โWhen trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.โ
โWall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.โ
โDo not save what is left after spending, but spend what is left after saving.โ
โIf past history was all there was to the game, the richest people would be librarians.โ
โThe stock market is a device for transferring money from the impatient to the patient.โ
โOnly buy something that youโd be perfectly happy to hold if the market shut down for ten years.โ
โRule #1: Never lose money. Rule #2: Never forget rule #1.โ
โI never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.โ
โI will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.โ
Related: The Best Money Quotes of All Time.
Benjamin Graham Investment Quotes
Investor, Economist, and Professor. Popularly known as the โfather of value investing.โ His writings include Security Analysis and The Intelligent Investor.
โThe underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.โ
โIf you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.โ
โConfronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.โ
โTo achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.โ
โIn the short run, the market is a voting machine, but in the long run it is a weighing machine.โ
โBuy not on optimism, but on arithmetic.โ
โAs in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.โ
โThe margin of safety is always a function of the price paid. It will be large at one price, small at some higher price, and non-existent and some still higher price.โ
โThe function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future.โ
โThere are two requirements for success in Wall Street. One, you have to think correctly; and secondly, you have to think independently.โ
โThe individual investor should act consistently as an investor and not as a speculator.โ
โThe investorโs chief problem and even his worst enemy is likely to be himself.โ
Peter Lynch Investment Quotes
Investor, Mutual Fund Manager, and Philanthropist. The former manager of Fidelityโs popular Magellan Fund. His writings include: “One up on Wall Street” and “Beating the Street.”
โIf youโre prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader wonโt get bored.โ
โBehind every stock is a company. Find out what itโs doing.โ
โTwenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.โ
โKnow what you own, and know why you own it.โ
โIf you donโt study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.โ
โIf youโre prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader wonโt get bored.โ
โIn the long run, itโs not just how much money you make that will determine your future prosperity. Itโs how much of that money you put to work by saving it and investing it.โ
โKnow what you own, and know why you own it.โ
โThe real key to making money in stock market is not to get scared out of them.โ
โAlthough itโs easy to forget sometimes, a share is not a lottery ticket. Itโs part ownership of a business.โ
โAs I look back on it now, itโs obvious that studying history and philosophy was much better preparation for the stock market than, say, studying statistics. Investing in stocks is an art, not a science, and people whoโve been trained to rigidly quantify everything have a big disadvantage. If stock-picking could be quantified, you could rent time on the nearest Cray computer and make a fortune. But it doesnโt work that way. All the math you need in the stock market you get in the fourth grade.โ
โIโm always fully invested. Itโs a great feeling to be caught with your pants up.โ
โLong-term investing has gotten so popular, itโs easier to admit youโre a crack addict than to admit youโre a short-term investor.โ
Related: 100 Ways To Save Money Fast.
Jesse Livermore Investment Quotes
Investor and Legendary Stock Trader. He was popularly referred to as the โBoy Plungerโ or โThe Great Bear of Wall Street.โ Books about Jesse Livermore include “Reminiscences of A Stock Trader” and “How To Trade in Stocks.”
โAt long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments.โ
โMarkets are never wrong โ opinions often are.โ
โThe market does not beat them. They beat themselves, because though they have brains they cannot sit tight.โ
โThe average man doesnโt wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesnโt even wish to have to think.โ
โThere is only one side to the stock market; and it is not the bull side or the bear side, but the right sideโ
โIf I buy stocks on Smithโs tip I must sell those same stocks on Smithโs tip. I am depending on him. Suppose Smith is away on a holiday when the selling time comes around?
A man must believe in himself and his judgement if he expects to make a living at this game. That is why I donโt believe in tips.โ
โA prudent speculator never argues with the tape. Markets are never wrong, opinions often are.โ
โMen who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money.โ
Related: How To Buy Stocks For Beginners.
John Bogle Investment Quotes
Investor, Business Magnate, and Philanthropist. Founder of The Vanguard Group. His writings include Common Sense on Mutual Funds and The Little Book of Common Sense Investing.
โTo earn the highest of returns that are realistically possible, you should invest with simplicity.โ
โLower costs are the handmaiden of higher returns.โ
โThe boom and the bust were normalโjust two more swings in stock returns over the past century. Reversion to the mean is the iron rule of the financial markets.โ
โTime is your Friend, Impulse is your Enemy.โ
โIf you have trouble imagining a 20% loss in the stock market, you shouldnโt be in stocks.โ
โDonโt look for the needle in the haystack. Just buy the haystack!โ
โThe mutual fund industry has been built, in a sense, on witchcraft.โ
โBuying funds based purely on their past performance is one of the stupidest things an investor can do.โ
โThe two greatest enemies of the equity fund investor are expenses and emotions.โ
Charlie Munger Investment Quotes
Investor, Businessman, and Philanthropist. Vice-Chairman of Berkshire Hathaway. Some books about Charles Munger include โ “Poor Charlieโs Almanack: The Wit and Wisdom of Charles T. Munger” and “Seeking Wisdom: From Darwin to Munger.”
โIt 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.โ
โOur job is to find a few intelligent things to do, not to keep up with every damn thing in the world.โ
โAll intelligent investing is value investing โ acquiring more that you are paying for. You must value the business in order to value the stock.โ
“I think we have one big advantage. A lot of other people are trying to be brilliant, and weโre just trying to stay rational โฆ Trying to be brilliant is dangerous, particularly when gambling.”
โThe big money is not in the buying and selling, but in the waiting.โ
โWe have a passion for keeping things simple.โ
โAll intelligent investing is value investing โ acquiring more that you are paying for. You must value the business in order to value the stock.โ
John Templeton Investment Quotes
Investor, Banker, Fund Manager, and Philanthropist. Books include “Templeton Plan: 21 Steps To Personal Success and Real Happiness” and “Investing the Templeton Way.”
โThe only investors who shouldnโt diversify are those who are right 100% of the time.โ
โThe four most dangerous words in investing are: โThis time itโs different.’โ
โAn investor who has all the answers doesnโt even understand the questions. Success is a process of continually seeking answers to new questions.โ
โBull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoriaโ
Other Great Investing Quotes
โMarkets can remain irrational longer than you can remain solvent.โ โ John Maynard Keynes
โInvest in yourself. Your career is the engine of your wealth.โ โ Paul Clitheroe
โMost investors want to do today what they should have done yesterday.โโ Larry Summers
โThe broker said the stock was โpoised to move.โ Silly me, I thought he meant up.โ โRandy Thurman
โNever trust a stockbroker under the age of 60. โโ David R. Wommack
โSuccessful investing is anticipating the anticipations of others.โ โ John Maynard Keynes
โThe markets are unforgiving, and emotional trading always results in losses.โ โ Alexander Elder
โOctober: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.โ โ Mark Twain
โThe whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when youโre wrong.โ โ William J. OโNeil
โNo profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.โ โ Robert Rhea
โThere are old traders and there are bold traders, but there are very few old, bold traders.โ โ Ed Seykota
โWhen an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns โ in short, being fooled by randomness.โ โ Nassim Nicholas Taleb
โBuy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments.โ โ Jean Paul Getty
โIf investing is entertaining, if youโre having fun, youโre probably not making money. Good investing is boring.โ โ George Soros
โWhen buying shares, ask yourself, would you buy the whole company?โ โ Rene Rivkin
โWe need to stop pretending that we can divine the future, and instead concentrate on understanding the present, and preparing for the unknown.โ โ James Montier
โInvesting should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.โ โ Paul Anthony Samuelson
โIf youโre saving, youโre succeeding.โ โ Steve Burkholder
โThe stock market is filled with individuals who know the price of everything, but the value of nothing.โ โ Philip Fisher
โEvery once in a while, the market does something so stupid it takes your breath away.โ โ Jim Cramer
โHow many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.โ โ Robert G. Allen
โCompound interest is the eighth wonder of the world. He who understands it, earns it; he who doesnโt, pays it.โ โ Albert Einstein
โAn investment in knowledge always pays the best interest.โ โ Benjamin Franklin
โIf investing is entertaining, if youโre having fun, youโre probably not making any money. Good investing is boring.โ โ George Soros
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” โ Paul Samuelson
โValue investing is at its core the marriage of a contrarian streak and a calculator.โ โ Seth Klarman
โWhile some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.โ โ Seth Klarman
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Awesome list of quotes. The compound interest one is legendary. Stay awesome my fellow Canadian.
@Dr. BEF: Thanks for stopping by!
This one from John Bogle is great…
โTime is your Friend, Impulse is your Enemy.โ
Never read that one before.