Wisdom and Lessons

  • “The real key to making money in stocks is not to get scared out of them.” – Peter Lynch
  • “Investing is not nearly as difficult as it looks. Successful investing involves doing a few things right…and avoiding serious mistakes.” – John Bogle
  • “In choosing a portfolio, investors should seek broad diversification. Further, they should understand that equities – and corporate bonds also – involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the bad as well as the good times.” – Harry Markowitz
  • “If a business is worth a dollar and I can buy it for 40 cents, something good may happen…” – Warren Buffett
  • “It was never my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!” – Edwin Lefevre
  • “The government solution to a problem is usually as bad as the problem.” – Milton Friedman
  • “It is the part of a wise man to keep himself today for tomorrow and not to venture all his eggs in one basket. – Miguel deCervantes
  • “Asset allocation…is the overwhelmingly dominant contributor to total return.” – Gary Brinson, Brian Singer & Gilbert Beebower
  • “There is nothing new in the world except the history you do not know.” – Harry Truman
  • “He that is overcautious will accomplish little.” – Friedrich vonSchiller
  • “[What if my advisor talks only about returns, not risk?]…It’s his job to take risk into account by telling you the range of possible outcomes you face. If he won’t, go get a new planner, someone who will get real.” – William Sharpe
  • “As life closes in on someone who has borrowed far too much money on the strength of fare too little income, there are no fire escapes.” – John Kenneth Galbraith
  • “It takes as much energy to wish as it does to plan.” – Eleanor Roosevelt
  • “A wise man should have money in his head, but not in his heart.” – Jonathan Swift
  • “When you do not know a thing, to all that you do not know it – this is knowledge.” – Confucius
  • “Asking an economist for investment advice is like asking a physicist to fix a broken toilet. Not their field, though sort of related.” – Milton Friedman
  • “The stock market is a giant distraction to the business of investing.” – John Bogle
  • “Always keep your portfolio and your risk at your own individual comfortable sleeping point.” – Mario Gabelli
  • “A good portfolio is more than a long list of good stocks and bonds. It is a ‘balanced whole’, providing the investor with protections and opportunities with respect to a wide range of contingencies.” – Harry Markowitz
  • “The ability to focus attention on important things is a defining characteristic of intelligence.” – Robert Shiller
  • “It is trust, more than money, that makes the world go round.” – Joseph Stiglitz