Quotes to Ponder

You know you're well diversified when there is always some part of your portfolio that you're not happy with.

Bill Hornbarger


Tune out the financial TV channels. Watch the cooking channel or the gardening channel if you want useful advice.

Burton Malkiel


Never test the depth of the river with both feet.

Warren Buffett


If you're not yet wealthy but want to be someday, never purchase a home that requires a mortgage that is more than twice your household's total annualized realized income.

Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D., The Millionaire Next Door

 

If you want to know the single greatest obstacle to stock market success, look in the mirror.

James O'Shaughnessy, How to Retire Rich

 

When you buy what you don't understand, you are gambling that what you don't know won't hurt you.

Ken Gregory, Kiplinger's, October 2003 

 

The investor's chief problem - and even his worst enemy - is likely to be himself.

Benjamin Graham (1894-1976)  - considered the "father of value investing"

 

To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.

Warren Buffett, Preface to Benjamin Graham's book The Intelligent Investor

 

If you under invest, you will one day be buying that classic cookbook, 72 Ways to Prepare Alpo and Love It.

Dave Ramsey, The Total Money Makeover 

 

Investors should remember that excitement and expenses are their enemies.

Warren Buffett


Stocks aren't lottery tickets. There's a company attached to every share.

Peter Lynch, One Up on Wall Street

 

I know we've got deficits, major environmental problems, several social ills, and so on. And these are serious problems. Unfortunately, we'll always have serious problems. However, equating "serious" with "fatal" would be to greatly underestimate this country. It is a gloom moment in history, never has the future seemed so dark and incalculable. The United States is beset with racial, industrial and commercial chaos, drifting we know not where. Of our troubles, no man can see the end.

Harper's Magazine editorial, written back in 1847!

 

Money is a good servant but a bad master. 

Sir Francis Bacon


Returns decrease as motion increases

Warren Buffett


It is said that there are two kinds of investors: those who don't know where the market is going, and those who don't know that they don't know.  But there is a rather pathetic third kind - the market strategist. These highly visible brokerage house executives are articulate, highly paid, usually attractive, and invariably well tailored. Their job is to convince the investing public that their firm can divine the market's moves through a careful analysis of economic, political, and investment data. But at the end of the day, they know only two things: First, like everybody else, they don't know where the market is headed tomorrow. And second, that their livelihood depends upon appearing to know.

William Bernstein, The Four Pillars of Investing

 

Be fearful when others are greedy, and be greedy when others are fearful.

Warren Buffett


The 1970s rock opera Tommy, by The Who, is about a "deaf, dumb and blind kid" who "sure plays a mean pinball." As the song Pinball Wizard says, "He ain't got no distractions, can't hear those buzzers and bells." The most successful investors are those who can tune out distractions.

Jack Brennan, Straight Talk on Investing

 

It's not what a man don't know that makes him a fool, but what he does know that ain't so.

Josh Billings