621 Quotes About Investing

Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.

Always write down all the reasons of why you are buying an asset. Review the list periodically and only sell when the majority of reasons are not valid anymore.

Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.

When you invest in stocks or any other asset, your primary risk is the permanent loss of capital. Your secondary risk is a sub-par return, and that’s it. You don’t have any other risk.

Most of the traders think and act like gamblers. They believe that they can outsmart the rest of the players with the help of a trading system. They take investing as a game, and daily quotes are their scorecards.

Cash and bank deposits are not risk-free investments. They suffer substantial hidden risks like inflation, credit, and foreign exchange.

More often than not, the most significant asset may not be on the balance sheet.

Investing without a clear understanding of associated risk is like a child is playing with fire. Risk assets are called risk assets for a reason.

An investment business has certain risks, and your job as an investor is not to eliminate all risks but to manage and minimize them.