Five investing quotes to print and frame in your study5 min read . Updated: 27 Sep 2021, 10:09 AM IST
- Here’s a list of greatest investment quotes of all time by legendary investors
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Investment is an integral part of an individual’s life.
However, most people have no idea where to begin when it comes to investing. Fortunately, we can learn from great investors from the past and present.
Famous investors such as Benjamin Graham, Warren Buffett, Charlie Munger, Peter Lynch, and others have provided us with timeless investment quotes over the years.
Sure, these investing quotes will be meaningless if you do not take action and put what you've learned into practice. But they can sometimes provide the motivation you need to make better financial decisions.
Here's a selection of timeless investing quotes that can guide you through your investment journey.
#1 The Value of Knowledge
‘An investment in knowledge pays the best interest’ - Benjamin Franklin
Legendary leader Benjamin Franklin, being a man of wisdom, precisely explained the value of knowledge.
Knowledge plays a part in everything we do. It can help you get wealthy, make better decisions, be better at sports, take better care of your health and much more.
When it comes to investing, nothing will pay off more than educating yourself.
The investment you make in yourself will always pay off. The wiser you are, the better decisions you'll make. The smarter you are, the more things you will be successful at.
#2 Be Fearful When Others are Greedy
‘I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy’ - Warren Buffett
Warren Buffett says he always tries to remain fearful when others are greedy. From fearful, he means to say be cautious about stock markets and not remain too invested when others are greedy.
When investors get too optimistic about something, prices rise unnecessarily.
They usually do not book profits, will purchase more and more, and will ignore what the asset's correct price is.
However, if there is any unfavourable news about it on any given day, this price would be difficult to maintain and might result in a very abrupt decline.
Thus, when others are too greedy, we should be fearful of our investments and reduce our portfolio.
In doing so, we may take benefit of the higher price (due to others' greed) and protect ourselves against a major downturn. When the cost of anything is very high, the risk of failure is likewise increased.
#3 Financial Security
‘Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this’ - Dave Ramsey
When it comes to financial stability, you can be your own worst enemy. According to Dave Ramsey, a financial expert and radio presenter, a lot of it is in your brain.
After years of working with people in debt, Ramsey believes it's apparent that it's not only a lack of money that prevents individuals from attaining ‘financial serenity’. Instead, it's their attitude towards money.
Denial, keeping up with the Joneses, and ignorance are three typical mindsets that Ramsey has identified as impediments to financial serenity.
Keeping up with the Joneses is an idiom which basically means when an individual is doing something in order to show that they have as much money as other people, rather than because they really want to do it.
If you want to win in life and have financial peace, you should learn to control your spendings and save more money to invest.
Working towards your financial goals will provide far more security than buying unnecessary or expensive things.
4. Time is Precious
‘Time is more valuable than money. You can get more money, but you cannot get more time’ - Jim Rohn
Time is one of the most important things a human being has, we cannot afford to waste it since it is what we require to accomplish our goals.
We encounter many things during our life, and each one provides us with a learning opportunity.
However, there are instances when this opportunity is not favourable, and we feel as if we have wasted our time. Because time is irreversible, this would be the worst-case scenario.
When we strike a balance between money and time, time takes all the weight, because even in order to make money, we need this indispensable tool as time is.
So, we must not allow that the pursuit of money blind us and don’t let us take advantage of all the time life gives us, not just to attain our objectives, but also to enjoy life and make it all worthwhile.
It should always be our top goal to make sure that every experience in which we devote our time is valuable and fruitful.
5. Short Term vs Long Term
‘All self-help boils down to choose long-term over short-term’ - Naval Ravikant
According to Ravikant, long-term thinking gets you long-term results.
He has implied this saying in a thousand different ways like in business you want to play long-term game with long-term people.
Short-term thinkers focus on the now, with little regard for the future. They make decisions and take action accordingly.
On the other hand, long-term visionaries are always visualizing what’s next. Could be tomorrow, next month, or many years down the road.
Regardless of the timeframe, the key is that when they make decisions they are taking into consideration the consequences, benefits, etc. of the current actions but at a later date.
The same theory applies for investors as well. Short term trading without proper understanding can make you or break you, while long-term investment can help you become financially stable.
Timeless financial quotes give investors a better perspective on the future by conveying wisdom from the past.
If you are nervous or scared of investing in stock markets, then look at these quotes for reassurance and everything will work out well in the long run.
Also, if you are just starting out investing, use the wisdom passed on by these legends to help you be a smarter investor.
At the end of the day, the more knowledge you have about a topic and the more you can control your emotions, the better off you will be.
(This article is syndicated from Equitymaster.com)
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