Quotes About Finance

Asset allocation is everything!

What dollar-cost averaging really means is systematically putting the same amount of money across your full portfolio—not just the stock portion.

Remember, volatility can be your friend with dollar-cost averaging, and it can also allow for another technique that will keep you on track, "rebalancing

You want to know the banker's secret? Your interest payments will tack on an additional 100% or more to your loan value.

Transaction Costs. Transaction costs are a broad, sweeping category and can be broken down further into categories such as brokerage commissions, market impact costs (the cost of moving the market as mutual funds trade massive market-moving positions), and spread costs (the difference between the bid-and-ask or the buy-and-sell price of a stock).

Because investors as a group can't beat the market, because they are the market.

His best single rant: "maximum diversification, minimal cost, and maximum tax efficiency, low turnover [trading], and low turnover cost, and no sales loads." How

But you have to take some of those assets off the table to reduce your exposure to risk and make certain that you keep some of the gains or profits you've made.

Don't lose money!" But for many investors, that means having to settle for mediocre returns in the Security Bucket.

Investing is 95% luck and 5% skill. And maybe if I'm wrong, it's 98 and 2. TR: Not to insult any active managers!

We have learned that nobody beats the market (except for a handful of "unicorns")! And by using low-cost market-mimicking index funds, we can outperform 96% of mutual funds and nearly as many hedge funds.

Not only will the vast majority (96%) of actively managed mutual funds not beat the market, they are going to charge us an arm and leg, and extract up to two-thirds of our potential nest egg in fees. But here is the kicker: they are going to have the nerve to look you in the eye and tell you that they truly have your best interests at heart while simultaneously lobbying Congress to make sure that is never the case.

Surprise, the returns reported by mutual funds aren't actually earned by investors.

And finally, we learned that wealth without risk is a possibility. Sure, there is risk in everything, but we learned that certain structures will allow us to participate when the market goes up and not lose when it falls!

And most individual investors pay too much for the privilege of being average.

Rule 1: don't lose money. Rule 2: see Rule 1. —WARREN BUFFETT'S RULES OF INVESTING

Sólo hay una forma de mantener su riqueza y es sencillamente ésta: gaste menos de lo que ingresa, e invierta la diferencia.

So let's recap. Not only will the vast majority (96%) of actively managed mutual funds not beat the market, they are going to charge us an arm and leg, and extract up to two-thirds of our potential nest egg in fees. But here is the kicker: they are going to have the nerve to look you in the eye and tell you that they truly have your best interests at heart while simultaneously lobbying Congress to make sure that is never the case.

There's an awful lot of luck relative to skill. Investing is 95% luck and 5% skill. And maybe if I'm wrong, it's 98 and 2.

Asset allocation, where to park your money and how to divide it up, is the single most important skill of a successful investor. And as we will learn from the masters, it's not that complicated! Low-cost TDFs might be great for the average investor, but you are not average if you are reading this book!

Paul Tudor Jones

There are six that I think are really important and they are US stocks, US Treasury bonds, US Treasury inflation-protected securities [TIPS], foreign developed equities, foreign emerging-market equities, and real estate investment trusts [REITs].

Warren Buffett's top two rules of investing? Rule 1: don't lose money! Rule 2: see rule 1.

A bull market is like sex. It feels best just before it ends.