Learn from Warren Buffet quotes and other famous investment quotes
How can investing quotes help?
Reading investment quotes can provide you with expert insight and advice on how to invest. There are many quotes from famous investors that span a wide variety of financial strategies and methods that apply to different types of investors and to a range of investments.
Top investing quotes
Warren Buffet is arguably one of the most famous investors. Reading Warren Buffet quotes can give you access to his investing process. One of the top investing quotes from Warren Buffet is the following:
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
When you read this investing quote, you can understand that investors need to be even-tempered and not make investment decisions that are based on what other people do or out of emotional reactions. This is a key factor in investing with a long-term viewpoint. Another famous investor is Mohamed El-Erian. He is known as a top expert in the financial industry and has written two New York Times Best Sellers. Reading Mohammed El Erian quotes can be instructive. One of the top investing quotes from Mohammed El Erian is the following:
“Investors should invest in what they know. The biggest mistake is to invest in what they don’t know.”
In other words, it is important for you to conduct research and invest in companies that you understand. When you have a thorough understanding of a particular industry, it will be easier for you to properly value the securities of different companies within it.
Americans and their investments
According to FINRA, an estimated 60% of American households own investments. For most people, these investments are contained in their employer-sponsored plans or IRA accounts. By comparison, only 30% of American households have taxable brokerage accounts.
Statista reports that 55% of Americans invested in the stock market last year. While this percentage represents an increase over the last few years, it is lower than the 65% of Americans who invested in 2007 before the financial crisis.
What are some of the top investment quotes about the stock market?
While you can find many quotes on investing in the stock market, several stand apart because of the success of the investors who made them. These leading investment quotes help to educate you about the stock market and how you should approach your investments.
Warren Buffett is known as one of the top investors in the world. He serves as the chairman and CEO of Berkshire Hathaway and has dedicated his life to educating investors. Among the many famous Warren Buffet quotes, you can find pieces of information that can help you to understand the right approaches to take to investing.
Warren Buffet said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”
In other words, success at investing requires you to take a long view of the market and of your investments. You should choose your investments wisely and hold onto them for the long-term.
Peter Lynch is another famous investor. When he served as the manager of the Magellan Fund at Fidelity Investments from 1977 to 1990, he managed to more than double the returns of the S&P 500 with an average return of 29.9%.
Regarding investing in stocks, Peter Lynch said, “I think you have to learn that there’s a company behind every stock and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.”
Lynch also said, “People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.”
These two Peter Lynch quotes explain that you must be willing to take the time to research the companies behind the stocks before you choose your investments. You must also be willing to stay in for the long-term and to accept occasional losses when they occur.
Benjamin Graham was a British economist who is regarded as the father of value investing. Warren Buffet was one of his proteges and said that Graham was the second-most influential person in his life behind only his own father.
Benjamin Graham famously said, “A great company is not a great investment if you pay too much for the stock.”
This investor quote demonstrates that you should research companies in order to identify stocks that are undervalued and choose those stocks. Taken together, these quotes from famous investors can provide you with an idea of how to approach your investments in the stock market.
Investment quotes about getting rich
Reading investment quotes from people who have amassed substantial wealth can also help you to understand some steps that you can take to build your own wealth.
Mark Cuban is an American businessman, the owner of the Dallas Mavericks, and a shark investor who appears on Shark Tank on ABC. When he discussed becoming rich, Cuban said, “Work like there is someone working twenty-four hours a day to take it all away from you.”
In other words, to become rich, you must be willing to work very hard and to anticipate that other people might attempt to take what you have built away from you.
Suze Orman is a financial advisor and motivational speaker who has authored numerous best-selling books on personal finance and becoming wealthy.
Suze Orman said, “What’s keeping you from being rich? In most cases, it’s simply a lack of belief. In order to become rich, you must believe you can do it, and you must take the actions necessary to achieve your goal.”
This means that if you want to become rich, you will need to create a plan to get there. You must also be willing to take concrete steps in order to reach your goal.
About becoming rich, Munger said, “When any guy offers you a chance to earn lots of money without risk, don’t listen to the rest of his sentence. Follow this, and you’ll save yourself a lot of misery.”
In other words, you should look at any get-rich-quick schemes with a great degree of skepticism. There are many fraudulent investment schemes out there. If one appears too good to be true, avoid it.
Quotes on types of investments
John Maynard Keynes was a famous British economist whose ideas formed the basis of Keynesian economics. Among his many famous investment quotes, Keynes said, “As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.”
In other words, Keynes recommended that investors choose companies to invest in that they know about and that they believe in. He also suggested that investors should invest large sums of money into those companies.
William H. Gross cofounded the Pacific Investment Management Co., which is the biggest fixed-income investment company in the world. According to Gross, “Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.”
This means that you should try to identify stocks and bonds that promise growth and choose to invest in them.
Carl Icahn is a famous investor and is the founder of Icahn Enterprises. He said, “I look at companies as businesses, while Wall Street analysts look for quarterly earnings performance. I buy assets and potential productivity. Wall Street buys earnings, so they miss a lot of things that I see in certain situations.”
In other words, growing rich may involve more than simply looking at the quarterly earnings of a company. You should instead thoroughly research a company so that you can develop an understanding of how it operates as a business before you invest in it.
Investment quotes on outperforming the market
Sir John Templeton was a British investor and philanthropist who founded the Templeton Growth Fund. Reading quotes from John Templeton can help you to understand how to outperform the market. Among the John Templeton quotes, he said, “Bull markets are born in pessimism, grow 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.”
This quote, as well as other John Templeton quotes, explain that you should buy stocks when the markets are down because their values will be artificially low. When optimism is high, you should sell the stocks to outperform the market. Market outperform is a ranking that stock analysts give to stocks. A market outperform stock is one that is expected to outperform a specific index or the overall market.
George Soros is a famous investor and philanthropist who survived the Nazi occupation of Hungary before he emigrated to the U.K. in 1947. In one of his quotes on investing, Soros said, “Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.”
This means that you should be unafraid of taking risks and should attempt to avoid the obvious choices.
Investment quotes on borrowing money
Reading investor quotes about borrowing money can also be instructive. These investing quotes can help you to develop better financial habits.
Dave Ramsey is a radio host, author, and businessman who has been able to amass wealth and to provide financial advice to others to help them to get out of debt and to build their own wealth. Dave Ramsey said, “I tell everyone never to take more than a fifteen-year fixed-rate loan, and never have a payment of over 25 percent of your take-home pay. That is the most you should ever borrow.”
For example, when you are in the market to purchase a home, you should try to get no more than a 15-year fixed interest mortgage and should make certain that you do not buy a house that costs more than you can afford.
Ray Dalio is a hedge fund investor, philanthropist, and billionaire investor. Reading quotes from Ray Dalio can provide you with some insights about earning more. Among the Ray Dalio quotes that you should read, he said, “It all comes down to interest rates. As an investor, all you’re doing is putting up a lump-sum payment for future cash flow.”
This and other Ray Dalio quotes tell you that you should pay attention to the interest rates that are charged for money that you borrow. When you invest, you should likewise pay attention to the interest rates so that you might be able to determine the type of cash flow that the investment might generate for you in the future.
Investment quotes on risk
Reading investing quotes about risk can help you to understand how risk relates to your investments and to the stock market. Risk is defined as an investor’s ability and willingness to withstand volatility in the stock market.
Seth Klarman is a famous author and billionaire investor. When he spoke about risk, he said, “Most investors are primarily oriented toward return and how much they can make and pay little attention to risk or how much they can lose.”
In other words, it is important for you to understand the risk of different investments and your ability to tolerate risk before you invest.
Mark Cuban said, “If you’re prepared and you know what it takes, it’s not a risk. You just have to figure out how to get there. There is always a way to get there.”
This means that researching potential investments thoroughly helps you to develop a deep understanding of their potential. This helps to reduce the risks that you would otherwise face.
When Sir John Templeton was asked about risk, he said, “If you want to have a better performance than the crowd, you must do things differently from the crowd.”
In other words, you should not invest in something simply because many other people are doing so. Instead, you should take a contrarian approach and strive to invest in a smart and different manner. Contrarians choose to invest against the majority trends.
When Ray Dalio was asked about risk, he said, “In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money.”
This underscores the importance of understanding your risk tolerance and investing in such a way that your investment choices match your level of risk. You should determine if you are aggressive, conservative or a combination.
George Soros said, “The hardest thing to judge is what level of risk is safe.”
In other words, you must determine your level of risk to make good investment choices. Your risk level will depend on your financial goals and the amount of time that you have to invest.
Investment quotes on long-term investing
Reading quotes about long-term investing can help you to understand why taking a long view is important.
Robert Kiyosaki said, “People don’t like the idea of thinking long term. Many are desperately seeking short-term answers because they have money problems to be solved today.”
Ralph Wanger said, “If you’re looking for a home run — a great investment for five years or 10 years or more — then the only way to beat this enormous fog that covers the future is to identify a long-term trend that will give a particular business some sort of edge.”
Seth Klarman said, “The single greatest edge an investor can have is a long-term orientation.”
Taken together, these quotes about long-term investments demonstrate that you should avoid thinking about your finances in the short-term. By taking a long view of your investments, you will be better equipped to handle volatility and market fluctuations when they occur.
Investing in general
There are numerous Warren Buffet quotes about investing in general that are informative. Reading Warren Buffet quotes about investing as well as quotes by other famous investors can help you to better understand the investing process.
Warren Buffet said, “You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”
Ray Dalio said, “For every mistake that you learn from you will save thousands of similar mistakes in the future, so if you treat mistakes as learning opportunities that yield rapid improvements you should be excited by them. But if you treat them as bad things, you will make yourself and others miserable, and you won’t grow.”
To learn more about investing in general, you should also read leading financial websites and top investment blogs. Reading personal finance blogs and money blogs and learning about top investment apps can give you a good knowledge base as you start to invest.
Reading investing quotes can help to educate you about investments and how to potentially earn more money. M1 Finance can help investors to learn how to invest in a smart and effective way.
Investing with M1 Finance
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