In the investment world, the success you crave on your road to building wealth has been achieved by others in the past. A smart step toward achieving your investment goals is to learn from others who have already succeeded.
These quotes are full of investment wisdom to reshape your attitude toward investing, help you find a suitable investment plan, and plan a strategy to achieve your financial goals.
We all know the over-simplistic advice of “buy low, sell high,” but Getty goes a step further. Many investors panic in a falling market and sell to cut their losses or protect their capital. If everyone is selling, the price drops, often rapidly. This can be a good time for you to step in and invest at cheaper prices.
The tricky part is holding your nerve and riding out the until the market stabilizes and people begin to buy again. More buyers mean prices rise, and in the long term, that will help your wealth grow.
Always be thorough in your research and make solid investments designed for the long term. Choose companies with a proven history and exemplary leadership that you can trust.
It is well known that a diversified investment plan is a crucial element to successful investing. But researching and investing in multiple assets and companies with good long-term prospects one by one is time-consuming. For someone new to investing, it is also daunting and leaves you vulnerable to mistakes.
ETFs (Exchange Traded Funds) can be a good option. Like mutual funds, you can buy “baskets” of securities at once. Instead of trawling through companies hoping to find that “needle” or gem to invest in, buy the whole haystack (or index).
Investing in ETFs, combined with diversification across geographical locations and asset classes, can help protect you against price drops in an individual company, location, or asset class. This is especially true when investing in assets that tend to perform differently from each other, such as stocks and bonds.
Known as the “Father of Value Investing,” Benjamin Graham was a mentor of Warren Buffet. His advice centers around a long-term investment strategy.
Graham viewed stocks as actually owning part of the business, riding out price dips with a big-picture approach to a long-term gain.
Investing as a “speculator” rides on the hope of snatching quick profits, and decisions are often made on impulse and hunches. Graham stressed the importance of making decisions based on solid fundamentals. Buy when prices are low and hold onto those investments for the long term.
Successful investors have emotional stability, patience, and discipline. These are far more critical qualities than a high IQ or a background in finance.
Savvy investors have unshakeable self-control. They do not impulse-buy or panic-sell. They have done their homework before investing and take a long-term view, riding out any short-term dips in the market. Investing from an emotional position rather than a well-researched and logical one is when people lose money.
With a long-term strategy, you will be able to ride out downward turns in the market more easily. You can take advantage of bear markets by investing at a good price, and stay invested for the long term as the market has always historically trended upwards. Always approach your investments with a cool head and remove the from your buying and selling decisions.
Take inspiration from these quotes and apply them to your investing behavior, and you’ll have a much greater chance of successful wealth-building over time and achieving your financial goals.