When I was an outsider to the world of investing, I believed that investing in the share marke t would be like Harry Potter’s magic wand. This was because every now and then, I came across stories of quick and sudden gains in the stock market.
You just swish the wand and boom! You’re rolling in money.
But when I got a peek into the share markets, I realised there was no magic. It’s all logic. Just like any other business, you have to put in effort or money to earn from the share markets.
Either do the detailed analysis or pay someone who can do it for you. Just like any other business, even in share markets, knowledge comes from experience.
And we know that in life the advice that comes with experience matters the most.
With that in mind, we bring to you, the 5 investing quotes from seasoned investors that will change your thinking for good.
These value investing quotes are still relevant today. Let’s get started…
#1 We don’t have 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 lots of important advice to investors. In this one, he highlights the importance of consistency over smartness.
Whenever we talk about investing in the share market, we subconsciously want to be the smartest. We can invest in a stock that is best in all aspects and is undiscovered and earn money that no one can.
But we forget that if no one can, it’s because that kind of earning does not exist! We all want windfall gains, but we ignore the power of small regular gains.
While running behind this mirage of being the smartest, we often put ourselves at high risk.
A stock that is well known and earns small but consistent gains is much better than a stock that is not known and might fetch huge profits.
This value investing quote has a lot to do with discipline. Many times, you’ll be given the chance to take a different path (than what you would follow). It’s at times like these that this quote would come in handy.
Be disciplined and follow a sound investing process no matter what may come. You will likely do well.
Warren Buffett, the CEO of Berkshire Hathaway, is one of the world’s most successful investors. He has been featured in the list of the world’s richest men many times.
#2 Being a value investor means looking at the downside before looking at the upside – Li Lu
This quote is one of the most relevant quotes in current times.
In 2022, the markets have been volatile. They have been bleeding red. People have been crying out loud about how their good morning is no longer good because every morning, they wake up to their portfolio at new lows.But at the same time value investors have been rejoicing.They have been rejoicing because they had looked at the downside – the risk of share price falling, before looking at the gains – gains from the shares.“What’s the worst that can 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 that makes long-term investments in Asia and the US. #3 It is not how much money you make, but how much money you keep, how hard it works for you, and how many generations you can keep it for. – Robert Kiyosaki We have heard stories of how someone used to be extremely rich back in their time but their future generations are now leading a life of hardships.This happens when people have the business acumen to earn money but not the foresight to keep the money growing.Having a good source of income is not enough. In investing, it is equally important to figure out how this source will not go dry and to have backups in case the source dies.If you earn only for yourself, your job is only half done. You should be able to generate wealth for generations to come. Finding stocks that will generate wealth for you and also your grandsons is the key to successful investing. This is easier said than done but not impossible.Robert Kiyosaki […]
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