There’s so much to learn about investing. One of the best ways to understand the industry is to study some great investors and purveyors of financial knowledge. Here, we share 11 quotes by philosophers, business people, and investors. We hope you learn something new and enjoy studying the history, context, and meaning behind these insightful quotes.
1. "An investment in knowledge pays the best interest." — Benjamin Franklin
This is such a good quote because it refers to educating yourself to become an empowered investor. Financial literacy is crucial for diving into the investment world, and there are no better returns than those you gain from education.
2. "In investing, what is comfortable is rarely profitable." — Robert Arnott
This quote may not seem directly related to the first, but education is often the first foundational step. The more educated you are about what risk means, what returns look like over the long run, and what you should expect in both good and bad times, the more confident investors will feel when stepping out of their comfort zone. Having an investment portfolio that aligns with your personal risk tolerance and goals is important That said, investing to get the potential returns you need to achieve your goals is often uncomfortable.
3. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen
While savings accounts are a great financial tool for keeping some of your money readily available, they traditionally have low-interest rates that won’t contribute to your growing net worth. They also do a terrible job of keeping up with inflation. While a market investment might not be as safe as a savings account, it tends to do much better over the long run
4. "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." — Robert Kiyosaki
Having a high income or great investment returns does you no good if you blow it all. No one likes to hear it, but budgeting is important to ensure you know how you allocate your money, including saving for yourself.
5. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson
There is certainly a thrill in investing in the market (though this year certainly doesn’t feel thrilling), but the most successful investors value thoughtfulness and research over impulsive decisions. Good investors are in it for the long haul, not for the thrill of the quick chase.
6. "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
History doesn’t necessarily repeat itself, but it does seem to rhyme. When looking at market trends, there are some important points we should take away from investing. Mainly, over the long-run, the market tends to be up. Understanding this history will make you a more educated investor.
7. “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein
Compounding returns is truly a financial wonder. It’s why it is important to start early, save often, and let the portfolio be.
8. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." — Warren Buffett
Sometimes, when it comes to investing, simpler is better. Rather than reinventing the wheel, you should focus on consistent disciplined strategies and making your life easier (and hopefully more profitable).
9. “Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby M.C. Davis
Investing in the market is a long-term play, and your portfolio should reflect your personal timelines. Investing is emotional, and emotions tend to lead us to horrible decisions. People tend to be greedy when things feel good, and scared when they feel bad, which if acted upon, usually leads to poor investment timing. It’s typically better to try to stay level-headed in your decision-making and follow a consistent disciplined approach.
10. “The intelligent investor is a realist who sells to optimists and buys from pessimists.” — Benjamin Graham
The financial markets are all about patience. Optimists will buy high, pessimists will sell low, and the intelligent investor capitalizes on both of these emotional decisions.
11. “Know what you own, and know why you own it.” – Peter Lynch
When it comes to quotes about investing, this one is a classic. It goes back to being financially literate and understanding your choices. Know the “why” behind the pieces of your portfolio. Everything should be in an account for a reason, whether to add growth or reduce risk.
Did we miss any important quotes about investing? We would love to hear yours!
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