Quotes About Speculation

What song the Sirens sang, or what name Achilles assumed when he hid himself among women, though puzzling questions, are not beyond all conjecture.

Discussing the possibilities of extraterrestrial life: I would love it even if they were short, sullen, grumpy and sexually obsessed. But there just isn't any good evidence.

Secrecy is a vacuum and nothing fills a vacuum like paranoid speculation.

When you think about the CIA, you probably imagine two of our most popular and enduring myths. The first is that our mission is to search the globe for any conceivable threat to the United States, and the second is that we have the power to perform the first. This myth is the by-product of an organization, which, by its very nature, must exist and operate in secrecy. Secrecy is a vacuum and nothing fills a vacuum like paranoid speculation.

The fact is, nobody has the faintest idea of what is going to happen next year, next week, or even tomorrow. If you hope to get anywhere as a speculator, you must get out of the habit of listening to forecasts. It is of the utmost importance that you never take economists, market advisers, or other financial oracles seriously.

But make sure you remember this: The people who now claim that the next "sure thing" will be health care, or energy, or real estate, or gold, are no more likely to be right in the end than the hypesters of high tech turned out to be.

While it seems easy to foresee which industry will grow the fastest, that foresight has no real value if most other investors are already expecting the same thing.

Many Internet IPOs rose 1,000% or more in 1999 and early 2000; most of them lost more than 95% in the subsequent three years. How could these early gains earned by a few investors justify the massive destruction of wealth suffered by the millions who came later? Many IPOs were, in fact, deliberately underpriced to "manufacture" immediate gains that would attract more attention for the next offering.

The stock market's performance depends on three factors: real growth (the rise of companies' earnings and dividends) inflationary growth (the general rise of prices throughout the economy) speculative growth—or decline (any increase or decrease in the investing public's appetite for stocks)

Everybody knows that most people who trade in the market lose money at it in the end. The people who persist in trying it are either (a) unintelligent, or (b) willing to lose money for the fun of the game, or (c) gifted with some uncommon and incommunicable talent. In any case they are not investors. p12

Never mingle your speculative and investment operations in the same account, nor in any part of your thinking.

just as in 1929 the companion theory for the "blue chips" was that no price was too high for them because their future possibilities were limitless.

risks therein must be assumed by someone. * There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.

We are convinced that the public generally will derive far better results from fixed-value investments, if selected with exceeding care, than from speculative operations, even though these may be aided by considerable education in financial matters.

day trading—holding stocks for a few hours at a time—is one of the best weapons ever invented for committing financial suicide.

High valuations entail high risks.

By the time everyone decides that a given industry is "obviously" the best one to invest in, the prices of its stocks have been bid up so high that its future returns have nowhere to go but down.

The recurrent excesses of its advances and declines are due at bottom to the fact that, when values are determined chiefly by the outlook, the resultant judgments are not subject to any mathematical controls and are almost inevitably carried to extremes.

If you buy a stock purely because its price has been going up—instead of asking whether the underlying company's value is increasing—then sooner or later you will be extremely sorry. That's not a likelihood. It is a certainty.

There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.

particularly as to whether they have a clear concept of the differences between investment and speculation and between market price and underlying value.

Is the stock market riskier today than two years ago simply because prices are higher? The answer is no." But the answer is yes. It always has been. It always will be.

Instead, let's tune out the noise and think about future returns as Graham might. The stock market's performance depends on three factors: real growth (the rise of companies' earnings and dividends) inflationary growth (the general rise of prices throughout the economy) speculative growth—or decline (any increase or decrease in the investing public's appetite for stocks)

intelligent investor designates a tiny portion of her total portfolio as a "mad money" account. For most of us, 10% of our overall wealth is the maximum permissible amount to put at speculative risk. Never mingle the money in your speculative account with what's in your investment accounts; never allow your speculative thinking to spill over into your investing activities; and never put more than 10% of your assets into your mad money account, no matter what happens.