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The Globe and Mail, a national Canadian newspaper, has recently begin putting out a magazine called Globe Investor. In the premier edition, Rob Carrick has compiled a pretty cool list of quotes from famous investors such as Warren Buffet and David Dreman. These are what he considers to be 10 pieces of his favorite investing advice. Here are the 10 quotes from the article – I would encourage you to check out Rob’s articles at The Globe and Mail as there is some good additional commentary about each of these quotes.
1. Investor’s repeatedly jump ship on a good strategy just because it hasn’t worked so well lately and, almost invariably, abandon it at precisely the wrong time. – David Dreman
2. A stock dividend is something tangible – it’s not an earnings projection; it’s something solid, in hand. A stock dividend is a true return on the investment. Everything else is hope and speculation. – Richard Russell
3. Investors who look only at how a strategy has performed recently can be seriously misled, and end up either ignoring a great long-term strategy that has recently underperformed or poling into a mediocre strategy that has recently been on fire. – James O’Shaughnessy
4. Invest at the point of maximum pessimism. – James O’Shaughnessy
5. The investment profession is about managing portfolios to maximize long-term returns, while the investment business is about generating (often short-term) earnings as investment return. – Michael Mauboussin
6. For a know-nothing investor, a low-cost index fund well beat professionally managed money. – Warren Buffet
7. The one thing about which I am absolutely certain is that if I pay less in fees, there is going to be more for me. – Burton Malkiel
8. I tell people investing should be dull. It should be like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson
9. All intelligent investing is value investing. – Charlie Munger
10. If you have trouble imagining a 20% loss in the market, you shouldn’t be in stocks. – John Bogle
That pretty much sums all the advice you will read on various financial and investing blogs. If your financial advisor are telling you something that goes against any of this advice, then you need to find a new financial advisor.
I agree that Rob Carrick has some very interesting commentary on personal finance and it is worth while reading his stuff.
I like #4 but boy is it hard to do! The others are good too. Thanks for sharing.
Peter
These are great! #2 left me scratching my head for a moment. As an accountant, I read it literally as a “stock dividend”, not as it was intended a cash dividend on stock. As we all know, a stock dividend is little more than a glorified stock split in that it increases the total number of shares while lowering the price of each share and does not change the market capitalization or the total value of the shares held.
Best Wishes,
D4L