Quotes About Investment

Ideally, a fine painting, like a house, is neither a speculation nor an investment; it is a purchase. Its value consists solely of the pleasure and utility it provides now and in the future. The dividend the painting provides is of the non-financial variety. How

Never forget that the portfolio's the thing: Inevitably, it will contain poorly performing asset classes—there will always be at least one—but its identity will change from year to year.

instead of investing a stream of savings, you have just inherited a lump sum of money at age 25 from Uncle Fred that is large enough to fund your retirement at age 65

The commercial banker performs three near-sacred functions central to any capitalist society: the safeguarding of other people's money; the provision of working capital to businesses, without which the economy cannot function; and the creation of money. By contrast, the investment banker sells stocks and bonds to the public, a much riskier and morally more ambiguous activity.

market history shows that when there's economic blue sky, future returns are low, and when the economy is on the skids, future returns are high;

Una acción o bono sólo vale el ingreso que produzca en el futuro.

But in the investment arena, our social instincts are poison.

For example, the most consistent bit of irrational investment behavior is the commonplace observation that we are less likely to sell losers than winners. This is known in behavioral finance circles as "regret avoidance." Holding onto a stock that has done poorly keeps alive the possibility that we will not have to confront the finality of our failure.

If you decide to buy bonds or a bond fund, make sure the average maturity is less than the time horizon of the savings.

One hoary investment company story describes a young broker asking an old one about the secret to his success. The latter replies, "It's simple; over the years I've slowly transferred my client's assets to my own name.

The point of this whole historical exercise is to establish the most important concept in finance, that risk and return are inextricably connected. If you desire the opportunity to achieve high returns, you have to shoulder high risks.

When, and only when, you've gotten rid of all your debt are you truly saving for retirement.

The Austrian economist Eugen von Böhm-Bawerk stated that the cultural and political level of a nation could be discerned by its interest rate: The more advanced the nation, the lower the loan rate.

At this point, it's important to clarify the difference between bonds and stocks. A bond is simply a loan. Most often, bonds have a sharply limited upside: the best that you can do is collect your interest payments and principal at maturity. A share of stock, on the other hand, represents a claim on all of the future earnings of the company. As such, its upside is potentially unlimited. It

Paradoxically, in the long run, bonds are at least as risky as stocks. This is because stock returns are "mean reverting." That is, a series of bad years is likely to be followed by a series of good ones, repairing some of the damage.

The most important investment ability of all is emotional discipline.

Investors cannot earn high returns without occasionally bearing great loss.

In the words of Fred Schwed, one of the most astute observers of the investment scene (and certainly the funniest): There are certain things that cannot be adequately explained to a virgin either by words or pictures. Nor can any description I might offer here even approximate what it feels like to lose a real chunk of money that you used to own.

Tasa de descuento alta = riesgo percibido elevado, alta rentabilidad, cotización de acciones depreciada. Tasa de descuento baja = riesgo percibido bajo, baja rentabilidad, cotización de acciones elevada.

It's pretty clear that there's a relationship between return and risk—you enjoy high returns only by taking substantial risk. If you want to earn high returns, be prepared to suffer grievous losses from time to time. And if you want perfect safety, resign yourself to low returns.

Albert Einstein has it that "Compound interest is the eighth wonder of the world. He who understands it, earns it.

In common parlance, the shares of good companies are called "growth stocks," and those of bad companies are called "value stocks.

The most fundamental characteristic of any investment is that its return and risk go hand in hand. As all too many have learned in the past few years, a market that doubles rapidly is just as likely to halve rapidly, and a stock that appreciates 900% is just as likely to fall 90%.

The risk of owning stock in a single shaky company is very high. But in a portfolio of many such losers, a few might reasonably be expected to pull through, providing the investor with a reasonable return. Thus