Asked on 03 Mar 2020
Which quotes have inspired you on your investing journey?
"Buy at prices you would not sell at. Sell at prices you would not buy at"
I love this one as well:
"Be Fearful when others are greedy and greedy when others are fearful." - Warren Buffett
Very true in everything in life, most of the time the things which are hyped up are often over valued and over priced. Simple economics of demand and supply 101!
“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes"
"Price is What You Pay; Value is What You Get" - Warren Buffett
The covid pandemic affected the US market in late February 2020. Lock down occur, prices fall and economic downturn. 4 months later, market spike up due to successful initial vaccine trials and young Robinhood investors flock the market, dissing Warren Buffett, stating that his ideas and theories are obsolete. But little did they know, optimism was short-lived and prices went spiralling down again. One of the young Robinhood investors even suicided after seeing a $730,000+ negative balance in his account.
Lesson learnt: Although prices of the companies increases, value of the companies did not. US was undergoing a lockdown period hence companies in actual fact did not even recover, therefore investing on the value of the company provides you with a better sleep at night.
Just my two cents of the sudden epiphany that I got on this quote in my investing journey:)
"In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten." - Peter Lynch
“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price." Reminds me that before getting ahead of myself and buying a stock, I should make the effort to do my research and understand why I'm interested in owning a part of this company.
I think this quote from Warren Buffett still stuck with me the best
"Be fearful when others are greedy. Be greedy when others are fearful."
Here's one of mine:
“Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” -- Sir John Templeton
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” -- Warren Buffett
Mine. Be weary of being too fearful when others are greedy, be weary of getting too greedy when others are fearful.
There is one in "The Intelligent Investor" that has kept me from speculating and second-guessing my decisions.
"An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative"
“Price is what you pay. Value is what you get.” - Warren Buffett
This is short and sweet on knowing the value of things that you are paying for, and to make sure you dont overvalue and pay too much.
"In the short run, the stock market is a voting machine but in the long run, the stock market is a weighing machine" - Ben Graham.
This quote is always here to remind me that fundamentals will always be the reason why stocks go up because it won't lie. But in the short run market noises and sentiments can drive up a stock even if its fundamentals are shaky (think Tesla). So this quote is always here to tell me to think like an investor by sticking to a long term view instead of a short term one and to ignore all market noises!
Another one I really like is "Know what you own and why you own it" -Peter Lynch
We have to understand what stocks we own so that it is within our circle of competence. If we don't understand what we own and just buy it, you will never know when to sell it since you don't know why you bought it in the first place. So this quote really reminds me to stay within my circle of competence and only invest into things I understand and not speculate.
I have many many more quotes that really inspires me but at the end of the day, these quotes are here to condition you to think like an investor instead of a speculator. So stick long term and think long term. If you buy a stock for the long run, you should not think about selling it unless there is a change in growth story or fundamentals are weak. Cheers!
Ideally, everyone knows about "Buy low, sell high", but at the same time "buy high, sell higher" for those stocks that are on the run and for those stocks who has fallen, cut loss fast.
"Markets can stay irrational longer than you can stay solvent" - John Keynes
I think this is a great quote to keep in mind when doing any sort of investing, but especially so if you are doing leveraged trading. You may be right in the long run, but it won't matter if your account has already been wiped out!
Invest in what you know by Peter Lynch.
In my early days of investing, I literally misunderstood this concept and bought shares simply because I 'know' the company.
I actually still rely on this quote now but in a different manner. This quote now reminds me to keep my investment simple and look for stocks that I understand and is within my circle of competence.