ETF Store Insight

Our Favorite Investing Quotes

September 22nd, 2016 by Nathan Geraci

Nathan Geraci is President of The ETF Store, Inc. and host of the weekly radio show “The ETF Store Show“.

Some of the brightest minds in history have either tried their hand at investing, or closely observed the financial markets.  As investors, we have the fortune of being able to learn from their experiences.  Here are some of our favorite quotes that can make everyone a better investor:

Investor Behavior

“The most important quality for an investor is temperament, not intellect.” – Warren Buffett

“Investing should be more like watching paint dry or watching grass grow.  If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

Investment Costs

“In mutual funds you don’t get what you pay for.  You get what you don’t pay for.” – John Bogle

“What happens in the fund business is the magic of compounding returns is overwhelmed by the tyranny of compounding costs” – John Bogle

Knowing What You Own

“Know what you own, and know why you own it.” – Peter Lynch

“Never invest in any idea you can’t illustrate with a crayon” – Peter Lynch

Diversification

“Diversify. In stocks and bonds, as in much else, there is safety in numbers.” – Sir John Templeton

Harry Markowitz once called diversification the only “free lunch” in investing.

Saving

“In the long run, it’s not just how much money you make that will determine your future prosperity.  It’s how much of that money you put to work by saving it and investing it.” – Peter Lynch

A key commonality among each of these quotes is they speak to things you can control as an investor:  behavior, costs, knowing what you own, diversifying your portfolio, saving.  No investor can control what happens in the financial markets, but you can control each of the above.  It is our belief that focusing on these areas represents the blueprint for successful investing.

A few other market-related quotes to ponder given the current environment:

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” – Sir John Templeton

“Don’t confuse brains with a bull market.” – Humphrey Neill

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” – John Bogle