Chart Self-explainatory (Click on the picture to enlarge)
Friday, September 11, 2009
Thursday, September 10, 2009
Wednesday, September 9, 2009
Quotable Quotes by Market Bigwigs
George Soros -->
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."
"Playing by the rules, one does the best he can, irrespective of the social consequences. Whereas in making the rules, people ought to be concerned with the social consequences and not with their personal interests."
"I rely a great deal on animal instincts."
Was he one of the world's greatest investors?
George Soros will always be remembered for his almost $1 billion profits made when he shorted the British Pound. Or making over 60% yearly returns on his Quantum Fund with almost $4 billion under management.
Staggering returns by any standard! But not too many seem to recall George Sosros's horrific 60%+ losses in his funds when he was caught in the 1987 crash!
In fact, Soros even admits that he is rarely more than half right!
Warren Buffet -->
I never buy anything unless I can fill out on a piece of paper my reasons.
I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because ...” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money
"Rule No.1 is never lose money. Rule No.2 is never forget rule number one."
"Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner."
"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies."
"Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it."
"If, when making a stock investment, you're not considering holding it at least ten years, don't waste more than ten minutes considering it."
David Dreman -->
"Psychology is probably the most important factor in the market – and one that is least understood."
"I paraphrase Lord Rothschild: ‘The time to buy is when there's blood on the streets.'"
"One of the big problems with growth investing is that we can't estimate earnings very well. I really want to buy growth at value prices. I always look at trailing earnings when I judge stocks."
"If you have good stocks and you really know them, you'll make money if you're patient over three years or more."
Philip A. Fisher -->
"I don't want a lot of good investments; I want a few outstanding ones."
"I remember my sense of shock some half-dozen years ago when I read a [stock] recommendation to sell shares of a company . . . The recommendation was not based on any long-term fundamentals. Rather, it was that over the next six months the funds could be employed more profitably elsewhere."
Benjamin Graham -->
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."
"Even the intelligent investor is likely to need considerable willpower to keep from following the crowd."
"It is absurd to think that the general public can ever make money out of market forecasts."
William H. Gross -->
"Finding the best person or the best organization to invest your money is one of the most important financial decisions you'll ever make."
"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."
Carl Icahn -->
"I make money. Nothing wrong with that. That's what I want to do. That's what I'm here to do. That's what I enjoy."
"CEOs are paid for doing a terrible job. If the system wasn't so messed up, guys like me wouldn't make this kind of money."
"When most investors, including the pros, all agree on something, they're usually wrong."
Jesse L. Livermore -->
"Profits always take care of themselves but losses never do."
"The average man doesn't wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn't even wish to have to think."
"When it comes to selling stocks, it is plain that nobody can sell unless somebody wants those stocks. If you operate on a large scale, you will have to bear that in mind all the time.”
My satisfaction always came from beating the market, solving the puzzle. The money was the reward, but it was not the main reason I loved the market. The stock market is the greatest, most complex puzzle ever invented – and it pays the biggest jackpot….it was never the money that drove me. It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history. For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle, a conundrum to everyone who speculated on Wall Street.
Peter Lynch -->
"Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
"If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them."
"Investing without research is like playing stud poker and never looking at the cards."
"Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they're going to be higher or lower in two to three years, you might as well flip a coin to decide."
Bill Miller -->
"I often remind our analysts that 100% of the information you have about a company represents the past, and 100% of a stock's valuation depends on the future."
"The market does reflect the available information, as the professors tell us. But just as the funhouse mirrors don't always accurately reflect your weight, the markets don't always accurately reflect that information. Usually they are too pessimistic when it's bad, and too optimistic when it's good."
"What we try to do is take advantage of errors others make, usually because they are too short-term oriented, or they react to dramatic events, or they overestimate the impact of events, and so on."
Julian Robertson -->
"Our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don't do better than the 200 worst, you should probably be in another business."
"When Robertson is convinced that he is right," a former Tiger executive notes, "Julian bets the farm."
"Hear a [stock] story, analyze and buy aggressively if it feels right."
John Templeton -->
"Rejecting technical analysis as a method for investing, Templeton says, "You must be a fundamentalist to be really successful in the market."
"Invest at the point of maximum pessimism."
"If you want to have a better performance than the crowd, you must do things differently from the crowd."
Ralph Wanger -->
"An attractive investment area must have favorable characteristics that should last five years or longer."
"Chances are, things have changed enough so that whatever made you a success thirty years ago doesn't work anymore. I think that by concentrating on smaller companies, you improve your chances of catching the next wave."
"If you believe you or anyone else has a system that can predict the future of the stock market, the joke is on you."
William J. O'Neil -->
"Since the market tends to go in the opposite direction of what the majority of people think, I would say 95% of all these people you hear on TV shows are giving you their personal opinion. And personal opinions are almost always worthless … facts and markets are far more reliable."
"The whole secret to winning and losing in the stock market is to lose the least amount possible when you're not right."
"What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower."
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."
"Playing by the rules, one does the best he can, irrespective of the social consequences. Whereas in making the rules, people ought to be concerned with the social consequences and not with their personal interests."
"I rely a great deal on animal instincts."
Was he one of the world's greatest investors?
George Soros will always be remembered for his almost $1 billion profits made when he shorted the British Pound. Or making over 60% yearly returns on his Quantum Fund with almost $4 billion under management.
Staggering returns by any standard! But not too many seem to recall George Sosros's horrific 60%+ losses in his funds when he was caught in the 1987 crash!
In fact, Soros even admits that he is rarely more than half right!
Warren Buffet -->
I never buy anything unless I can fill out on a piece of paper my reasons.
I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because ...” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money
"Rule No.1 is never lose money. Rule No.2 is never forget rule number one."
"Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner."
"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies."
"Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it."
"If, when making a stock investment, you're not considering holding it at least ten years, don't waste more than ten minutes considering it."
David Dreman -->
"Psychology is probably the most important factor in the market – and one that is least understood."
"I paraphrase Lord Rothschild: ‘The time to buy is when there's blood on the streets.'"
"One of the big problems with growth investing is that we can't estimate earnings very well. I really want to buy growth at value prices. I always look at trailing earnings when I judge stocks."
"If you have good stocks and you really know them, you'll make money if you're patient over three years or more."
Philip A. Fisher -->
"I don't want a lot of good investments; I want a few outstanding ones."
"I remember my sense of shock some half-dozen years ago when I read a [stock] recommendation to sell shares of a company . . . The recommendation was not based on any long-term fundamentals. Rather, it was that over the next six months the funds could be employed more profitably elsewhere."
Benjamin Graham -->
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."
"Even the intelligent investor is likely to need considerable willpower to keep from following the crowd."
"It is absurd to think that the general public can ever make money out of market forecasts."
William H. Gross -->
"Finding the best person or the best organization to invest your money is one of the most important financial decisions you'll ever make."
"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."
Carl Icahn -->
"I make money. Nothing wrong with that. That's what I want to do. That's what I'm here to do. That's what I enjoy."
"CEOs are paid for doing a terrible job. If the system wasn't so messed up, guys like me wouldn't make this kind of money."
"When most investors, including the pros, all agree on something, they're usually wrong."
Jesse L. Livermore -->
"Profits always take care of themselves but losses never do."
"The average man doesn't wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn't even wish to have to think."
"When it comes to selling stocks, it is plain that nobody can sell unless somebody wants those stocks. If you operate on a large scale, you will have to bear that in mind all the time.”
My satisfaction always came from beating the market, solving the puzzle. The money was the reward, but it was not the main reason I loved the market. The stock market is the greatest, most complex puzzle ever invented – and it pays the biggest jackpot….it was never the money that drove me. It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history. For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle, a conundrum to everyone who speculated on Wall Street.
Peter Lynch -->
"Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
"If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them."
"Investing without research is like playing stud poker and never looking at the cards."
"Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they're going to be higher or lower in two to three years, you might as well flip a coin to decide."
Bill Miller -->
"I often remind our analysts that 100% of the information you have about a company represents the past, and 100% of a stock's valuation depends on the future."
"The market does reflect the available information, as the professors tell us. But just as the funhouse mirrors don't always accurately reflect your weight, the markets don't always accurately reflect that information. Usually they are too pessimistic when it's bad, and too optimistic when it's good."
"What we try to do is take advantage of errors others make, usually because they are too short-term oriented, or they react to dramatic events, or they overestimate the impact of events, and so on."
Julian Robertson -->
"Our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don't do better than the 200 worst, you should probably be in another business."
"When Robertson is convinced that he is right," a former Tiger executive notes, "Julian bets the farm."
"Hear a [stock] story, analyze and buy aggressively if it feels right."
John Templeton -->
"Rejecting technical analysis as a method for investing, Templeton says, "You must be a fundamentalist to be really successful in the market."
"Invest at the point of maximum pessimism."
"If you want to have a better performance than the crowd, you must do things differently from the crowd."
Ralph Wanger -->
"An attractive investment area must have favorable characteristics that should last five years or longer."
"Chances are, things have changed enough so that whatever made you a success thirty years ago doesn't work anymore. I think that by concentrating on smaller companies, you improve your chances of catching the next wave."
"If you believe you or anyone else has a system that can predict the future of the stock market, the joke is on you."
William J. O'Neil -->
"Since the market tends to go in the opposite direction of what the majority of people think, I would say 95% of all these people you hear on TV shows are giving you their personal opinion. And personal opinions are almost always worthless … facts and markets are far more reliable."
"The whole secret to winning and losing in the stock market is to lose the least amount possible when you're not right."
"What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower."
Subscribe to:
Posts (Atom)
Posts
