Best Inspirational Quotes from Stock Gurus

Here are our top five favorite stock quotes of all time.

1. Be greedy when others are fearful

This is one of the most well-known Warren Buffett quotes for stock investing because of its simplicity.  This quote goes hand in hand with “buy low and sell high” because as people sell the stock price declines while when people buy the stock price rises.  However, if you buy when people buy and sell what people sell you are going with momentum and not really getting in or selling at great prices.  This leads to potentially far lower returns and even losses.

        2. “Price is what you pay, value is what you get.”

Another Warren Buffett quote.  Buffett is a value investor, meaning that based on a company’s financials, he can determine whether a stock is trading above, at, or below a fair trading price.  It gives him and other value investors the ability to be independent of the market movement and know where a stock is expected to trade towards overtime.

        3. “Know what you own, and why you own it.”

This is a quote from Peter Lynch.  He managed one of the most successful mutual funds ever, the Magellan fund, for 13 years achieving at times a 30% return yearly.  This quote is something people can live by.  When you invest in stocks it’s important to understand how the company works.  How does it generate income, how are the employees treated, what does it sell, if it’s a store, where are its locations, etc.  The problem is people sometimes hear that some big investor is entering a position or some financial advisor is buying a stake in some stock and people may be inclined to buy it immediately without taking a moment to think if it is going to be worth owning for the next 10 years.  Not everyone is perfect, big investors can make mistakes too.

        4. “The key to making money in stocks is not to get scared out of them.”

Another Peter Lynch quote provides the common investor with some inspirational advice.  When you buy a stock, you shouldn’t be emotional.  You need to already be willing to lose half if not all of that investment in case the stock declines dramatically.  You only take a loss when you sell so it’s important to understand that if you know where a stock should trade towards, you can certainly hold it for the long term instead of taking a short-term loss.  This is where knowing what you own and value investing comes into play.

        5. “The big money is not in the buying or selling, but in the waiting.”

This is a quote from Charlie Munger, a business partner with Warren Buffett in Berkshire Hathaway.  He, like many successful investors, chooses to invest in the long-term future of a business.  He doesn’t day trade or swing trade.  He simply holds a stock for the long term.  This is crucial because of compound interest and also that the stock market is impossible to predict (you can sometimes get close but virtually impossible).  When you own a stock, you can receive dividends and reinvest or pocket the cash.  Voting is important to owning stocks if you hold a large stake, there are many factors that simply inform the common investor that day trading is never a sustainable form of income.  This is why long-term investing is a much safer and much more predictable form of growing wealth.

Overall, hope you enjoyed!  If you have any quotes feel free to let us know and as always if you’re interested in checking out more articles please check out our articles page where you can search for the info you may be interested in learning about as we talk about a wide variety of financial topics.