- Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.
- The propensity to gamble is increased by a large prize versus a small entry fee, no matter how poor the true odds may be.
- Derivatives are like sex. It’s not who we’re sleeping with, it’s who they’re sleeping with that’s the problem.
- Wall Street makes its money on activity. You make your money on inactivity.
- 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.
- The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually is the friend of the buyer of long-term values.
- We know that the less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.
- For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it’s going up.
- The stock market is a device for transferring money from the impatient to the patient.
- Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.
- Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.
- The market is there only as a reference point to see if anybody is offering to do anything foolish. When we invest in stocks, we invest in businesses.
“There is only one side of the market and it is not the bull side or the bear side, but the right side.” — Jesse Livermore
“The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.” — Peter Lynch
“The way I figure out the economy is literally from the bottom up and from company anecdotal information, knowing that housing leads retail and retail leads capital spending. From listening to the guys on the ground. When you talk to companies and to guys who run companies, you get a whole additional perspective on the economy.” — Stan Druckenmiller
“The whole world is simply nothing more than a flow chart for capital.” — Paul Tudor Jones
“Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” — John Templeton
“The sucker has always tried to get something for nothing, and the appeal in all booms is always frankly to the gambling instinct aroused by cupidity and spurred by a pervasive prosperity. People who look for easy money invariably pay for the privilege of proving conclusively that it cannot be found on this sordid earth.” — Jessie Livermore
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” — Peter Lynch
“The nature of the game as it is played is such that the public should realize that the truth cannot be told by the few who know.” — Jesse Livermore
“If you want to become really wealthy, you must have your money work for you.” — John Templeton
“Remember, things are never clear until it’s too late.” — Peter Lynch
“Every serious deflation I have looked at is preceded by an asset bubble, and then it bursts.” — Stan Druckenmiller
“The four most expensive word in the English language are ‘This time it’s different.” — John Templeton
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.” — Paul Tudor Jones
“Never invest in any idea you can’t illustrate with a crayon.” — Peter Lynch
“Looking at the great bull markets of this century, the best environment for stocks is a very dull, slow economy.” — Stan Druckenmiller
“At the end of the day, the most important thing is how good are you at risk control.” — Paul Tudor Jones
“Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.” — Peter Lynch