Quotes About Stocks

a blindfolded chimpanzee throwing darts at the stock listings can select a portfolio that performs as well as those managed by the experts.

A speculator buys stocks hoping for a short-term gain over the next days or weeks. An investor buys stocks likely to produce a dependable future stream of cash returns and capital gains when measured over years or decades.

Any investment that has become a topic of widespread conversation is likely to be hazardous to your wealth. It was true of gold in the early 1980s and Japanese real estate and stocks in the late 1980s. It was true of Internet-related stocks in the late 1990s and condominiums in California, Nevada, and Florida in the first decade of the 2000s, as well as bitcoin in 2017.

It turns out that the portfolio with the least risk had 18 percent foreign securities and 82 percent U.S. securities. Moreover, adding 18 percent EAFE stocks to a domestic portfolio also tended to increase the portfolio return.

October. This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August and February. —Mark Twain, Pudd'nhead Wilson

These very sad stories make all too clear the cardinal rule of investing: Broad diversification is essential.

Protect yourself: Every investor should always diversify.

Lynch calculated each potential stock's P/E-to-growth ratio (or PEG ratio) and would buy for his portfolio only those stocks with high growth relative to their P/Es. This was not simply a low P/E strategy, because a stock with a 50 percent growth rate and a P/E of 25 (PEG ratio of ½) was deemed far better than a stock with 20 percent growth and a P/E of 20 (PEG ratio of

Unlike common stocks, whose dividends and earnings fluctuate with the ups and downs of the company's business, bonds pay a fixed dollar amount of interest. If the U.S. Treasury offers a $1,000 20-year, 5 percent bond, that bond will pay $50 per year until it matures, when the principal will be repaid. Corporate bonds are less safe, but widely diversified bond portfolios have provided reasonably stable interest returns over time.

So-called "total stock market" funds will include both real estate companies and commodity products. Broad equity diversification can be achieved with one-stop shopping.

Indeed, when pessimism is rampant and market prices are down is the worst time to sell out or to stop making regular investment contributions. The time to buy is when stocks are on sale.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

It is the nature of an average that some investors will beat it.

The theory stresses that a stock's value ought to be based on the stream of earnings a firm will be able to distribute in the future in the form of dividends or stock buybacks.

Thus, purchasing a fund holding all the stocks in a broad-based index will produce a portfolio that can be expected to do as well as any managed by professional security analysts.

The best choice for your equity investments is a fund indexed to the total world stock market. If you are truly uncomfortable investing in "foreign" stocks, you could choose a domestic total stock market fund. We recommend that you be diversified internationally because the United States represents less than half of the world's economic activity and stock market capitalization. For your bonds, choose a total U.S. bond market index fund.

We have believed for many years that investors will be much better off bowing to the wisdom of the market and investing in low-cost, broad-based index funds, which simply buy and hold all the stocks in the market as a whole. As more and more evidence accumulates, we have become more convinced than ever of the effectiveness of index funds. Over 10-year periods, broad stock market index funds have regularly outperformed two-thirds or more of the actively managed mutual funds.

It is not hard to make money in the market.

At the heart of systems thinking lie three deceptively simple concepts: stocks and flows, feedback loops, and delay. They sound straightforward enough, but the mind-boggling business begins when they start to interact. Out of their interplay emerge many of the surprising,

If stocks and flows are a system's core elements, then feedback loops are their interconnections, and in every system, there are two kinds: reinforcing (or 'positive') feedback loops and balancing (or 'negative') ones. With reinforcing feedback loops, the more you have, the more you get. They amplify what is happening, creating vicious or virtuous circles that will, if unchecked, lead either to explosive growth or to collapse.

From 1981 to 1991, the average return on ten-year Treasury bills was 10.4 per cent; the Dow Jones Industrial Average was 12.9 per cent; and the average return on so-called junk bonds was 14.1 per cent.

unlike a corporation, real estate, intellectual property as well as stocks and bonds in a brokerage account can be transferred in and out of an LLC at their basis, thus incurring no taxation.

Real estate investors can accelerate their wealth building much faster than with other assets, such as stocks, bonds, and tax-deferred retirement funds.

Benjamin Graham, the author of Security Analysis, a classic guide to investing.