Quotes About Stocks

Bonds are even worse, since their returns do not mean revert—a series of bad years is likely to be followed by even more bad ones, as happened during the 1970s. This is the point made by Jeremy Siegel in his superb treatise, Stocks For The Long Run. Professor Siegel pointed out that stocks outperformed bonds in only 61% of the years after 1802, but that they bested bonds in 80% of ten-year periods and in 99% of 30-year periods. Looked

When stocks perform poorly, in order to raise living expenses you will be selling bonds, since their allocation will rise. Just do not forget to replenish the bond bucket with the proceeds of stock sales and to also take your living expenses from the stock bucket as well when times are flush.

Looked at from another perspective, in the 30 years from 1952 to 1981, stocks returned 9.9% and bonds returned only 2.3%, while inflation annualized out at 4.3%. Thus, during this period, the bond investor lost 2% of real value on an annualized basis, while the stock investor made a 5.6% real annualized return. The last fifteen years of that period were years of high inflation, so this is just another way of saying that stocks withstand inflation better than bonds. Short-term

Why the correlation between popular interest and subsequent low returns? Simple: Driving the price of any asset higher requires the entry of new buyers, and when everyone is invested in stocks, real estate, or gold, there's no one left to join the party; the entry of naïve, inexperienced investors usually signals the end.

During bull markets, everyone believes that he is committed to stocks for the long term. Unfortunately, history also tells us that during bear markets, you can hardly give stocks away. Most investors are simply not capable of withstanding the vicissitudes of an all-stock investment strategy. The

Note how small stocks have had higher returns than larger stocks, but that they also have higher risks. In both the Great Depression and the 1970s bear market, small-stocks sustained higher losses than large stocks. In addition, the small stock advantage is extremely tenuous—it's less than a percent-and-a-half per year, and there have been periods of more than 30 years when large stocks have bested small stocks. For these reasons, the small-stock advantage is controversial.

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

Whether you invest in stocks, bonds, or for that matter real estate or any other kind of capital asset, you are rewarded mainly for your exposure to one thing—its risk. We'll learn just how to measure that risk and explore the interplay of risk and investment return. Over

Thus, the logic of the market suggests that: Good companies are generally bad stocks, and bad companies are generally good stocks. Is this actually true? Resoundingly, yes. There have been a large number of studies of the growth-versus-value question in many nations over long periods of time. They all show the same thing: unglamorous, unsafe value stocks with poor earnings have higher returns than glamorous growth stocks with good earnings. Probably

A good rule of thumb is to never, ever pay more than 15 years fair rental value for any residence.c This computes out to a 6.7 percent (1/15th) gross rental dividend, or 3.7 percent after taxes, insurance, and maintenance, which is about what you might expect from a mixed portfolio of stocks and bonds.

Do not trust historical data—especially recent data—to estimate the future returns of stocks and bonds. Instead, rely on interest and dividend payouts and their growth/failure rates.

The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you're wrong.

investment books in the library. The best was How to Trade in Stocks, by Jesse Livermore.

Charts plus earnings will help you tell the best stocks and general markets from the weaker, riskier stocks and markets that you must avoid altogether.

I made a rule that I'd buy each stock exactly at the pivot buy point and have the discipline not to pyramid or add to my position at more than 5% past that point. Then I'd sell each stock when it was up 20%, while it was still advancing.

write to Securities Research Company, 27 Wareham Street, #401, Boston, MA 02118, and purchase one of the company's long-term wall charts. Also, in 2008, Daily Graphs, Inc., created a 1900 to 2008 stock market wall chart that shows major market and economic events.

Also, if one of the indexes is down for the day on volume larger than the prior day's volume, it should decline more than 0.2% for this to be counted as a distribution day. After

SECRET TIP—The first step in learning how to pick big stock market winners is to examine leaders of the past, like those you're about to see, to learn all the characteristics of the most successful stocks. From these observations, you will be able to recognize the types of price and earnings patterns these stocks developed just before their spectacular price advances.

Charts plus earnings will help you tell the best stocks

Successful long-term investors like Warren Buffett know that bear markets are buying opportunities.

In the 1990s, global military expenditures declined by perhaps 40 percent, and stocks of weapons of all kinds fell.

To Any and All Persons Who have bought stock from, or sold stock to, Mr. Martin Rochester You are asked to attend Mr. Kent's Coffeehouse, in Peter Street, near Bloomsbury Square this Thursday between the hours of noon and three, at which time you will receive compensation for your time

The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.

Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.