Quotes About Investment

For the second time, the Ten-Count System had shown moderately heavy losses mixed with "lucky" streaks of the most dazzling brilliance. I learned later that this was a characteristic of a random series of favorable bets. And I would see it again and again in real life in both the gambling and the investment worlds.

This plan, of betting only at a level at which I was emotionally comfortable and not advancing until I was ready, enabled me to play my system with a calm and disciplined accuracy. This lesson from the blackjack tables would prove invaluable throughout my investment lifetime as the stakes grew ever larger.

The safety of municipal bonds no longer seemed so assured. However, although they would have done better in equities, they still had enough money and, feeling safe, didn't worry as they would have done watching the ups and downs in the value of a stock portfolio.

challenge efficient market theorists to answer these questions: Why were people willing to pay $14,850 for 135 shares of PALM when they could have paid $7,000, and why were some investors buying PALM stock at a price that set a value of $53 billion for the company instead of acquiring it at a price of less than half as much by buying it via 3Com stock? It's not a question of information. The terms were simple, public, and known in advance.

The lesson of leverage is this: Assume that the worst imaginable outcome will occur and ask whether you can tolerate it. If the answer is no, then reduce your borrowing.

Kelly Criterion are: (1) The investor or bettor generally avoids total loss; (2) the bigger the edge, the larger the bet; (3) the smaller the risk, the larger the bet. The Kelly Criterion, not having been invented by the old-line academic economists, has generated considerable controversy.

In a typical life cycle, prior to adulthood we consume more than we produce. As we acquire education and training, we contribute more to society than it takes to support us. During this period, a prudent or fortunate investor will accumulate wealth from which to draw upon later as he ages and reduces his income from work.

First, you bought something you didn't really understand, so it was no better or worse than throwing a dart into the stock market list.

I'll be damned if I'm going to miss the overture and finale when I've payed good money for it... You can go, but I'm staying.

Whatever happens in the stock market to-day has happened before and will happen again.

Things were certainly coming my way so that there wasn't anything to do but to make money. It made me remember a saying of the late H. H. Rogers, of the Standard Oil Company, to the effect that there were times when a man could no more help making money than he could help getting wet if he went out in a rainstorm without an umbrella.

But the average man doesn't wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn't even wish to have to think. It is too much bother to have to count the money that he picks up from the ground.

I did precisely the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit.

Now, the point is not so much to buy as cheap as possible or go short at top prices, but to buy or sell at the right time.

You cannot be dead sure of anything in a speculative operation. It was the experience I have just told you that made me add the unexpectable to the unexpected in my list of hazards.

That is how I came to learn that even when one is properly bearish at the very beginning of a bear market it is well not to begin selling in bulk until there is no danger of the engine back-firing.

They are still angry. I am not. Getting angry doesn't get a man anywhere. More than once it has been borne in on me that a speculator who loses his temper is a goner.

If you do not know who you are, the stock market is an expensive place to find out.

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. Otherwise they could not benefit by their knowledge

Reminiscences is quoted as a major source of stock trading learning material for experienced and new traders by many of the traders who Schwager interviewed. The book is considered an investment classic.

Stocks are manipulated to the highest point possible and then sold to the public on the way down.

A stock which it is desired to distribute should be manipulated to the highest possible point and then sold.

You know, it's a bull market!

It takes a man a long time to learn all the lessons of all his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side.