There’s a lot to ponder with some of the best investment quotes below. They come from some of the world’s best investors and by learning from them, you can stand out from the crowd.
When setting out on any path, there’s no need to start without a map. Others have come before you and there’s a lot we can learn from them. Great thinkers – and doers – have packed lifetimes of wisdom into the words below.
To make it easier to digest, I’ve organized the quotes into groups. You’ll notice some of the logic overlaps, but that should help reinforce the underlying lessons. Without further ado, let’s dive in…
Investment Quotes on Time
1. You don’t need perfect timing to achieve marvelous returns. Time in the market beats timing the market – almost always.
2. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
3. If you want to succeed in investments, start early and try hard and keep doing it. All success comes that way, by and large.
4. You can lose money very fast, in two months, but you very rarely make money very fast in the stock market. When I look back, my great stocks took a long time to work out.
5. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.
6. The time component of compounding is why 99% of Warren Buffett’s net worth came after his 50th birthday, and 97% came after he turned 65.
7. If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.
8. In the short run, the market is a voting machine but in the long run, it is a weighing machine.
9. With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future.
-Carlos Slim Helú
10. Someone’s sitting in the shade today because someone planted a tree a long time ago.
Warren Buffett easily makes this list of the best investment quotes. You’ll see a few more below and here’s a larger list of Warren Buffett quotes.
Investment Quotes on Risk
11. You know, we think diversification is – as practiced generally – makes very little sense for anyone that knows what they’re doing… it is a protection against ignorance.
12. Don’t look for the needle in the haystack. Just buy the haystack.
13. The four most dangerous words in investing are, it’s different this time.
-Sir John Templeton
14. I don’t think the objective of investment should ever be to take a risk in order to get a return. I think the objective of shrewd investment should be to find opportunities which offer a larger return than the average, combined with adequate safety.
15. The biggest risk of all is not taking one.
16. Not even the “safest” investment is without some risk and some element of speculation.
17. We try to protect against tail risk: the risk of unlikely but possible events that could be catastrophic.
18. After a stock market decline, people may perceive more risk than before when, in fact, the decline may have taken some of the risk out of the market.
19. Minimizing downside risk while maximizing the upside is a powerful concept.
20. Given a 10% chance of a 100 times payoff, you should take that bet every time.
Investment Quotes on Psychology
21. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
22. The intelligent investor is a realist who sells to optimists and buys from pessimists.
23. Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.
24. The time to buy is when there’s blood in the streets.
25. When the facts change, I change my mind – what do you do, sir?
-John Maynard Keynes
26. An investment in knowledge pays the best interest.
27. Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part ownership of a business.
28. Gambling is a tax on ignorance. People often gamble because they think they can win, they’re lucky, they have hunches, that sort of thing, whereas in fact, they’re going to be remorselessly ground down over time.
-Edward O. Thorp
29. It is impossible to produce superior performance unless you do something different from the majority.
30. It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.
31. The ability to focus attention on important things is a defining characteristic of intelligence.
-Robert J. Shiller
32. The stock market is a device for transferring money from the impatient to the patient.
33. The four most dangerous words in investing are: ‘this time it’s different.
-Sir John Templeton
34. The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.
-John D. Rockefeller
35. This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.
36. Nearly every time I strayed from the herd, I’ve made a lot of money. Wandering away from the action is the way to find the new action.
You can learn a great deal by thinking about these investment quotes. They’re all short sayings but are packed with wisdom. And there are many overlapping lessons.
No matter what paths you take in life, these ideas can help. They’re cross disciplinary and when it comes to building wealth, they’re vital.
To learn more about investing, continue exploring Investment U. There are many investment opportunities to consider today…