There are many motivational quotes in the age of the internet. Love quotes, life quotes, inspirational quotes, and so on. But they are all generic and don’t mean much. Even more so for stock market investors.
Move over quotes like ‘there is no substitute for hard work’ and ‘buy low, sell high’.
Here are 10 solid stock market motivational quotes that come straight from the biggest names in the investing world.
1. “Bottoms in the investment world don’t end with four-year lows, they end with 10- or 15-year lows.” – By Jim Rogers.
While 10-15-year lows are not common in the stock market, they may happen.
Invest in the stocks of an industry you’ve researched thoroughly and be ready to see your investment go low before touching new highs.
2. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – By Warren Buffett
Going against the majority is the true way to make windfall gains in the stock market. This is one place where trying to fit in can be a giant mistake. Among the motivational quotes here, this one by Warren is probably the most famous one on this entire list.
The truth is, this simple suggestion by him is extremely hard to follow.
3. “The stock market is filled with individuals who know the price of everything, but the value of nothing.” – By Phillip Fisher
People in the stock markets love to look at the historical prices of a share and make buy or sell decisions. This approach is, needless to say, a loss-making approach in the long term and even in the short term.
There can be shares that are at an all-time low and are still not worth paying for. There can be shares that have reached their all-time high and still be worth investing in.
Philip Fisher’s motivational quotes are very popular among slightly more experienced investors.
4. “In investing, what is comfortable is rarely profitable.” – By Robert Arnott
Robert is trying to highlight how important it is to try newer options while investing. Nobody ever made high returns in the stock market without taking risks.
In fact, the more risk you take, the more you might earn. But then again, it is ‘risk’. The more risk you take, the more you might lose too. Rober advocates careful, calculated risk-taking.
5. “Every once in a while, the market does something so stupid it takes your breath away.” – By Jim Cramer
Very smart people have tried to understand and predict the movement of the stock markets. And they have failed.
The stock markets are very irrational in the short term.
You must always be prepared for the unexpected to happen. That is how randomness works.
On this list of motivational quotes, this quote by Jim Cramer is more intended as a statement than a quote or advice.
6. “Know what you own, and know why you own it.” – By Peter Lynch
Do not invest in stocks because everybody is talking about them. There is an interesting topic – the circle of competence. This means you should only invest in stocks that you understand.
And not just that, understand why you invested in a certain stock at all. There might be times when you might have to sell the stock because it does not suit your investment style.
The legendary investor has doled out such great advice to the markets that he has several motivational quotes to his credit.
7. “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – By Paul Samuelson
Investing in stocks over a long period of time is as incredibly boring and often involves hard work. It is not as exciting as many think it is. Paul Samuelson wants you to realize not to expect a thrilling experience from investing.
For that, he suggests you go to casinos and bet.
8. “The four most dangerous words in investing are: ‘this time it’s different.'” – By Sir John Templeton
A track record is of utmost importance. If you are investing a huge chunk of your money in a stock that has a history of poor performance, don’t expect very different results. The chances of the stock suddenly changing its nature are minuscule.
9. “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” – By Peter Lynch
Recessions can and do happen. In fact, they are unavoidable.
If you do not have the courage to stay invested through the ups and downs of the markets, investing in stock markets may not be for you.
As mentioned earlier, most of whatever Peter Lynch said became motivational quotes.
10. “Wide diversification is only required when investors do not understand what they are doing.” – By Warren Buffett
This is something new investors may find contradicting. You are advised to diversify your risk by investing in many stocks so that if something bad happens to one stock, you don’t lose too much.
But the flip side of this is if you invest in too many stocks, you don’t get the massive returns from the meteoric rise of a few good stocks.
So what Warren Buffet suggests is that once your understanding of stocks is good enough, you should invest n fewer companies. You should still diversify – but avoid over-diversification.
