You just swipe the stick and boom! You are rolling in money.
But when I looked into the stock markets, I realized that there is no magic. This is all logic. Like any other business, you have to put effort or money to earn from the stock markets.
either do a detailed analysis Or pay someone who can do it for you. Like in any other business, in the stock markets too, knowledge comes from experience.
And we know that what matters most is the advice that comes with experience in life.
Keeping this in mind, we bring you 5 investment quotes from experienced investors that will change your thinking for good.
These value investing quotes are still relevant today. let’s get started…
#1 We don’t need to be smarter than the rest. We have to be more disciplined than the rest. – Warren Buffett
Known as the “Oracle of Omaha”, Warren Buffett has given many valuable advice to investors. In this he has highlighted the importance of consistency over smartness.
We subconsciously want to be the smartest whenever it comes to investing in the stock market. We can invest in such stocks which are best in all aspects and which are overlooked and earn money which no one else can.
But we forget that if one can’t, it’s because that kind of earning doesn’t exist! We all want windfall profits, but we neglect the power of small regular profits.
By chasing after this mirage of being smart, we often put ourselves at high risk.
A stock that is well known and makes small but consistent profits is much better off than a stock that is not well known and can generate huge profits.
This value investing quote has a lot to do with discipline. At times, you will be given the opportunity to take a different path (which you will follow). There are times when this quote will come in handy.
Be disciplined and follow a good investment process no matter what comes. You’ll probably do well.
Berkshire Hathaway CEO Warren Buffett is one of the most successful investors in the world. He has been included in the list of the world’s richest people many times.
#2 Being a value investor means looking at the downside before looking up – Lee Lu
This quote is one of the most relevant quotes in the present times.
In 2022, the markets have been volatile. They are bleeding red. People are crying out loud about how their good morning is no longer good because every morning, they wake their portfolios to new lows.
But at the same time value investors have rejoiced.
They were rejoicing because they saw the downside risk of the stock price falling before seeing the profit-taking from the shares.
“What is the Worst That Could Happen?” And if the worst happens, “Can I bear the worst?”
Before investing in any stock, if you answer these two questions, you will never panic when the tables turn. One should expect the best but be prepared for the worst.
Li Lu is a value investor, businessman and philanthropist. He is the founder and chairman of Himalaya Capital. Himalaya Capital is a multi-billion dollar investment company with long-term investments in Asia and the Americas.
#3 It is not how much money you make, but how much money you keep, how hard you work, and how many generations you can keep it. — Robert Kiyosaki
We have heard how someone used to be very rich in his time but their future generations are now leading a life of hardships.
This happens when people have the business acumen to make money but don’t have the foresight to stop the money from growing.
Having a good source of income is not enough. In investing, it is equally important to find out how this source will not dry out and to have a backup in case the source dies.
If you earn only for yourself then your work is half done. You should be able to generate wealth for generations to come.
Finding stocks that will generate wealth The key to successful investing is for you and your grandchildren as well. It is easy to do but not impossible.
Robert Kiyosaki is a successful businessman and New York Times best-selling author. He is the author of the famous book Rich Dad Poor Dad – often called the #1 book on personal finance. He is the founder of Rich Global LLC and Rich Dad.
#4 Know what you have and why you own it. — Peter Lynch
One fundamental mistake an average investor makes while investing in the stock market is that the investor does not study the company.
We are used to tracking the share price and not tracking how the company has performed over the years. It may occasionally benefit from luck, but it is not an investment.
When you buy a share, you should have complete knowledge of the business of the company. You should have an insight into the future that the company envisions for itself. This is called investment.
Buying shares is the equivalent of owning a business. An owner must know what he has.
The flip side is knowing why you own the business. Do you trust business to do well? Are you confident that the company’s growth will be the same or better in the future?
An investor must have answers to all of these questions to be successful.
Peter Lynch is one of the most inspiring and successful investors of all time. He was manager of Magellan Funds at Fidelity Investments from 1977 to 1990. In these 13 years, he earned a lot from the firm and retired at the age of 46!
#5 The individual investor must continuously act as an investor and not a speculator. — Ben Graham
What better way to end it than with a value investing quote by the father of value investing himself!
We invest money in the financial markets with the expectation of profit. Gambling means playing a game of chance with money.
A speculator will buy a share because he believes the share price will rise. But an investor expects that the company will grow in future, the company will make profit and he will also earn from the company.
The investor has reasons to buy what he has brought. He just doesn’t expect prices to go up.
Speculator is betting on prices. Investment is relying on the management and business of the company. An investor should always believe that his investment is worth more than his investment.
Now we all know this but the problem is that we forget. Stocks fluctuate heavily and most of the investors turn into speculators.
Therefore, an investor has to constantly put in hard efforts to become an investor.
Five Lessons at a Glance…
– Consistency over perfection.
Protect the negative side and the upside will take care of itself.
Long term wealth creation while making short term profits.
Focus on the basics, not the prices.
Investing, not speculating!
If a person wants to earn in the long term from the stock market, then he should keep these five things in mind.
Do a detailed study and profit in the stock market will happen automatically. Of course, studying a company, management and its future is difficult and tedious.
But good things don’t come easily and they take time, right?
Stay tuned with Equitymaster to know more about investing.
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com