When it comes to the investing, three words often come to mind for us “regular Joes”: overwhelming, intimidating and frightening.
Investing starts with a positive mindset, and a willingness to explore, research and educate yourself (remember – an informed decision is a good decision). It is important to understand that those who are realistic about ever-changing market conditions and can embrace change (rather than resist it) are more likely to be successful than those who don’t.
Below are 7 of the simplest yet most insightful quotes about investing. Markets will continue to change, but good investing advice is timeless.
1. “In investing, what is comfortable is rarely profitable.” – Robert Arnott
Sometimes you need to step out of your comfort zone to reach your goals and experience significant gains. Know your risk boundaries; there’s no room for pride in this kind of self-analysis, and the best investment strategy can turn into the worst if you don’t have the stomach to see it through.
2. “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen
Though investing in a saving account is secure and a safe bet, what happens with inflation? This will make gains minimal given the extremely low interest rates. A savings account however is a great place for an emergency fund and to save for investing.
3. “An investment in knowledge pays the best interest.” – Benjamin Franklin
When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research, study and analysis before making any investment decisions.
4. “The market is filled with individuals who know the price of everything, but the value of nothing.” – Phillip Fisher
Another testament to the fact that investing without an education and research will ultimately lead to regrettable investment decisions. Research is much more than just listening to popular opinion.
5. “Know what you own, and know why you own it.” – Peter Lynch
Do your homework before making a decision. And once you’ve made a decision, make sure to re-evaluate your portfolio on a timely basis. A wise holding today may not be a wise holding in the future.
6. “The four most dangerous words in investing are: ‘this time it’s different.'” – Sir John Templeton
Follow market trends and history. Don’t speculate that this particular time will be any different. Whenever you hear talk of “new paradigms”, “new eras” or “new normals” it’s usually getting time for the cycle to go in the other direction.
7. “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”– Peter Lynch
When hit with recessions or declines, you must stay the course. Economies are cyclical, and the markets have shown that they will recover. Make sure you are a part of those recoveries.