1. Price is what you pay. Value is what you get.
–Warren Buffett
2. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
–Warren Buffett
3. If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored.
–Peter Lynch
4. Behind every stock is a company. Find out what it’s doing.
–Peter Lynch
5. While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.
–Seth Klarmans
6. Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.
–Peter Lynch
7. The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
–Benjamin Graham
[For some insight into dividend investing, check out 40 Things Every Dividend Investor Should Know.]
8. Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
–Warren Buffett
9. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. -
Warren Buffett
10. The individual investor should act consistently as an investor and not as a speculator.
–Benjamin Graham
11. Know what you own, and know why you own it.
–Peter Lynch
12. Based on my own personal experience – both as an investor in recent years and an expert witness in years past – rarely do more than three or four variables really count. Everything else is noise.
–Martin Whitman
13. We ignore outlooks and forecasts… we’re lousy at it and we admit it … everyone else is lousy too, but most people won’t admit it.
–Martin Whitman
14. There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker – you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do. The back and forth that goes on in the investment process helps you get at that.
–Joel Greenblatt
15. The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.
–Seth Klarman
16. Generally, the greater the stigma or revulsion, the better the bargain.
–Seth Klarman
17. If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.
–Benjamin Graham
18. Risk comes from not knowing what you’re doing.
–Warren Buffett
[Do you know what you're doing when it comes to dividend investing? Find out by reading Top 10 Myths About Dividend Investing.]
19. Investing is the intersection of economics and psychology.
–Seth Klarman
20. We don’t have to be smarter than the rest. We have to be more disciplined than the rest.
–Warren Buffett
21. Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.
–Ben Graham
22. Value investing is risk aversion.
–Seth Klarman
23. Value investing is at its core the marriage of a contrarian streak and a calculator.
–Seth Klarman
24. Cash combined with courage in a time of crisis is priceless.
–Warren Buffett
25. 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.
–Charlie Munger
26. Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world.
–Charlie Munger
27. In the short run, the market is a voting machine, but in the long run it is a weighing machine.
–Ben Graham
28. All intelligent investing is value investing — acquiring more that you are paying for. You must value the business in order to value the stock.
–Charlie Munger
[A lot of investors think that dividend investing and value investing are the same thing, but they're not; find out more in 5 Common Misconceptions About Dividend Investing.]
29. While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.
–Seth Klarman
30. Buy not on optimism, but on arithmetic.
–Benjamin Graham
31. As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.
–Benjamin Graham
32. If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.
–Warren Buffett
33. If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
–Peter Lynch
34. In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.
–Peter Lynch
35. Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
–Warren Buffett
36. Wide diversification is only required when investors do not understand what they are doing.
–Warren Buffett
37. If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.
–George Soros
38. Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.
–Peter Lynch
39. If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.
–Warren Buffett
40. Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.
–Warren Buffet
41. Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.
–Peter Lynch
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