You won’t find investors agreeing on much but you won’t find any of them investing on a whim. They have rules that they follow regardless of what the market is doing. If that’s how you invest, you’re probably losing money so how about constructing some rules of your own? We looked at some of the best well-known quotes from the most well-known investors.
“Be patient with winning trades; be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are ‘right’ only 30% of the time, as long as our losses are small and our profits are large.” –Dennis Gartman
Dennis Gartman began publishing The Gartman Letter in 1987. It is a daily commentary of global capital markets delivered to hedge funds, brokerage firms, mutual funds, and grain and trading firms around the world each morning. Mr. Gartman is also an accomplished trader and a frequent guest on financial networks.
New investors are often too quick to act. They sell when they’ve just started making money and as soon as a stock has a bad day, they immediately sell. Instead, find companies you believe in and hold them. In other words, be patient.
"It's Far Better to Buy a Wonderful Company at a Fair Price than a Fair Company at a Wonderful Price" –Warren Buffett
Warren Buffett is widely considered the most successful investor in history. Not only is he one of the richest men in the world but also has had the financial ear of numerous presidents and world leaders around the world. When Mr. Buffett talks, world markets move based on his words.
He is probably the most famous buy and hold investor and is proof that holding a stock for the long term certainly isn’t dead. People have studied this comment for years in investing schools. Simply, don’t look at price; look at quality. Just because it’s cheap doesn’t make it good. Just like in real life, sometimes you have to pay a little more to get something good. Use his advice and remember this: Stay away from penny stocks unless you have a compelling reason that comes from extensive research into the company.
“Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count. Good [investment] ideas should not be diversified away into meaningless oblivion.” –Bill Gross
Although he’s no longer at PIMCO, where he became known as “The Bond King,” Bill Gross is still high on the list of respected investors. Gross believes that you should invest big in something you believe in. He’s not saying that diversification is a bad idea but instead, over diversification can take away any meaningful gain in companies you believe in
“You learn in this business…If you want a friend, get a dog.” –Carl Icahn
Carl Icahn is a private equity investor and modern day corporate raider buying large stakes in companies and attempting to get voting rights to increase shareholder value. Some of his holdings have included Time Warner, Yahoo, Clorox, Valeant, and AIG.
Mr. Icahn has made his fair share of enemies over the years but investors shouldn’t take his advice strictly in terms of interpersonal relationships. Just because the media says something, doesn’t mean you should act. Same with friends, financial advisers, or those e-mailed tips. Nobody cares more about your money