Stocks Investment Quotes

October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.

If you aren't thinking about owning a stock for ten years, don't even think about owning it for ten minutes.

Don't look for the needle in the haystack. Just buy the haystack!

Advertising is like a stock market for your business investment.

invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.3

Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little.

Choosing individual stocks without any idea of what you're looking for is like running through a dynamite factory with a burning match. You may live, but you're still an idiot.

Trading doesn't just reveal your character, it also builds it if you stay in the game long enough.

We need a moderately-priced stock market… The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.

Arbitrage is not investing.

Ultimately, Investing is about holistic ROI. It’s not about just owning stocks or crypto or flipping for quick income. When we talk about holistic ROI, we are looking at our long term profit, short term profit, income security, cash flow, social impact, environmental impact, spiritual impact, stability of the permaculture economy, and more. That’s how we see it at Mayflower-Plymouth.

The greatest enemy of a good plan is the dream of a perfect plan.” Stick to the good plan. Traditional

The broker said the stock was "poised to move." Silly me, I thought he meant up.

Stock Traders are always trying to time the market. But an investor tends to be thinking bigger, more broadly, and more holistically.

Confidence is not "I will profit on this trade." Confidence is "I will be fine if I don't profit from this trade.

When there are multiple solutions to a problem, choose the simplest one.

I presumably lost $150,000 in the depression of 1937—on my one stock investment—because I did everything Lehman Brothers told me. I said, well, this is a fool’s procedure . . . buying stock in other people’s businesses.

If you can follow only one bit of data, follow the earnings—assuming the company in question has earnings. As you’ll see in this text, I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.

Real investors talk more about business than about stock prices. Real investors are reading company P&L statements and Balance Sheets and getting on Earnings Calls. Real investors are learning about customers and attending meetings and getting involved.

The grim irony of investing, then, is that we investors as a group not only don't get what we pay for, we get precisely what we don't pay for. So if we pay for nothing, we get everything.

The expectation that you bring with you in trading is often the greatest obstacle you will encounter.

The mind is a fascinating instrument that can make or break you.

In order to succeed, you first have to be willing to experience failure.

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum.

The fact that a thesis is flawed does not mean that we should not invest in it as long as other people believe in it and there is a large group of people left to be convinced. The point was made by John Maynard Keynes when he compared the stock market to a beauty contest where the winner is not the most beautiful contestant but the one whom the greatest number of people consider beautiful. Where I have something significant to add is in pointing out that it pays to look for the flaws; if we find them, we are ahead of the game because we can limit our losses when the market also discovers what we already know. It is when we are unaware of what could go wrong that we have to worry.

Money is just something you need in case you do not die tomorrow. Let this is a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness... Paradoxically (and as an unintended consequence) your trading performance will improve significantly.

Investing isn’t a game - It has a substantive impact on the living of life and the development of civilization. It’s not just about stock tickers and opening bells and timing buys and sells to get a quick profit in the gap…. It effects when and where houses are built, the quality of schools, the accessibility of organic food, the price of solar relative to gasoline…. Investments direct the development of civilization.

Never invest in stocks with borrowed money or a faint heart. Both are fatal

Invest like a bull, sit like a bear and watch like an eagle. (mantra for long term investing)

Growth requires reinvestment.

People who treat stocks like lottery tickets generally have similar odds of winning.

Buying funds based purely on their past performance is one of the stupidest things an investor can do.

A quiet mind is able to hear intuition over fear.

When you learn to let go of the need to be right, being wrong gradually lose its power to disturb you.

Wall Street never changes. The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes

The two greatest enemies of the equity fund investor are expenses and emotions.

Don't ever make the mistake of believing that market success has to come to you fast. Trade small, stay in the game, persist, and eventually, you'll reach a satisfying level of proficiency.

With small companies, my investment strategy is to be out of the stock in a year. My real estate strategy, on the other hand, is to start small and keep trading the properties up for bigger properties and, therefore, delaying paying taxes on the gain. This allows the value to increase dramatically. I generally hold real estate less than seven years.

In boxing, to avoid being punched, you can block, parry, slip, sidestep, or get out of the ring. It works exactly the same, in stock market investment.

Nearly every time I strayed from the herd, I've made a lot of money. Wandering away from the action is the way to find the new action.

Investment tip 101 When stock markets sink, beer sales rise.

When you were making excuses someone else was making enterprise.

Fear, inherently, is not meant to limit you. Fear is the brain’s way of saying that there is something important for you to overcome.

This is one of the keys to successful investing: focus on the companies, not on the stocks.

If you keep a $495 car payment throughout your life, which is “normal,” you miss the opportunity to save that money. If you invested $495 per month from age twenty-five to age sixty-five, a normal working lifetime, in the average mutual fund averaging 12 percent (the eighty-year stock market average), you would have $5,881,799.14 at age sixty-five. Hope you like the car!

Predicting the stock market is really predicting how other investors will change estimates they are now making with all their best efforts. This means that, for a market forecaster to be right, the consensus of all others must be wrong and the forecaster must determine in which direction-up or down-the market will be moved by changes in the consensus of those same active investors.

So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.

Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant.

Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments. • Look for companies with niches. • When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt. • Companies that have no debt can’t go bankrupt. • Managerial ability may be important, but it’s quite difficult to assess. Base your purchases on the company’s prospects, not on the president’s resume or speaking ability. • A lot of money can be made when a troubled company turns around. • Carefully consider the price-earnings ratio. If the stock is grossly overpriced, even if everything else goes right, you won’t make any money. • Find a story line to follow as a way of monitoring a company’s progress. • Look for companies that consistently buy back their own shares.

Even in those earlier times, finding the really outstanding companies and staying with them through all the fluctuations of a gyrating market proved far more profitable to far more people than did the more colorful practice of trying to buy them cheap and sell them dear.

Such a study indicates that the greatest investment reward comes to those who by good luck or good sense find the occasional company that over the years can grow in sales and profits far more than industry as a whole. It further shows that when we believe we have found such a company we had better stick with it for a long period of time. It gives us a strong hint that such companies need not necessarily be young and small. Instead, regardless of size, what really counts is a management having both a determination to attain further important growth and an ability to bring its plans to completion.

If we exaggerate the present and future value of the stock market, then as a society we may invest too much in business start-ups and expansions, and too little in infrastructure, education, and other forms of human capital.

It’s hard to make money working; and the harder the work, the worse the pay. It takes effort not to lose everything and end up on the street. It’s easy, on the other hand, to get rich without producing anything, moving money from one place to another, speculating, taking advantage of stock opportunities, investing in the hard work of others.

We can't all be bakers or chefs. Many of us have modest ambitions. But we can all buy a piece of the pie.

Having a coach or mentor is nothing more than sharing life’s experiences, no amount of education can substitute true life experience

Your money habits and investment strategy is not all about what you do, but much about who you are. Become the person it takes to do, succeed, and innovate.

Owning the stock market over the long term is a winner's game, but attempting to beat the market is a loser's game.

Not money, Not skills, but Time is the biggest lever for massive wealth creation

Invest in a share what you can afford to lose.

Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today's stock markets.

The true investor . . . will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.

Trading is not the same as investing. Trading includes a lot of fear, lack, and scarcity thinking. Traders aim to buy low and sell high in the quickest turnaround time possible, always fearful of potential outcomes and always needing to incessantly monitor the status of things and micromanage results. However, Investing includes a lot of faith, vision, trust, and endurance. Investors look at larger societal patterns and systems. Investors have wealth consciousness and they expect to earn exponentially larger profits over a longer timeframe.

Mother Nature does not develop Alzheimer’s—actually there is evidence that even humans would not easily lose brain function with age if they followed a regimen of stochastic exercise and stochastic fasting, took long walks, avoided sugar, bread, white rice, and stock market investments, and refrained from taking economics classes or reading such things as The New York Times.

Reaching any goal in trading requires specific domain knowledge and technical skills. But then, after that, it's all mindset management. Yet most people ignore that —they automatically think they have that last part all figured out, and it's a mistake.

Even a moment's reflection will help you see that the problem of using your time well is not a problem of the mind but of the heart. It will only yield to a change in the very way we feel about time. The value of time must change for us. And then the way we think about it will change, naturally and wisely. That change in feeling and in thinking is combined in the words of a prophet of God in this dispensation. It was Brigham Young, and the year was 1877, and he was speaking at April general conference. He wasn't talking about time or schedules or frustrations with too many demands upon us. Rather, he was trying to teach the members of the Church how to unite themselves in what was called the united order. The Saints were grappling with the question of how property should be distributed if they were to live the celestial law. In his usual direct style, he taught the people that they were having trouble finding solutions because they misunderstood the problem. Particularly, he told them they didn't understand either property or the distribution of wealth. Here is what he said: With regard to our property, as I have told you many times, the property which we inherit from our Heavenly Father is our time, and the power to choose in the disposition of the same. This is the real capital that is bequeathed unto us by our Heavenly Father; all the rest is what he may be pleased to add unto us. To direct, to counsel and to advise in the disposition of our time, pertains to our calling as God's servants, according to the wisdom which he has given and will continue to give unto us as we seek it. [JD 18:354] Time is the property we inherit from God, along with the power to choose what we will do with it. President Young calls the gift of life, which is time and the power to dispose of it, so great an inheritance that we should feel it is our capital. The early Yankee families in America taught their children and grandchildren some rules about an inheritance. They were always to invest the capital they inherited and live only on part of the earnings. One rule was "Never spend your capital." And those families had confidence the rule would be followed because of an attitude of responsibility toward those who would follow in later generations. It didn't always work, but the hope was that inherited wealth would be felt a trust so important that no descendent would put pleasure ahead of obligation to those who would follow. Now, I can see and hear Brigham Young, who was as flinty a New Englander as the Adams or the Cabots ever hoped to be, as if he were leaning over this pulpit tonight. He would say something like this, with a directness and power I wish I could approach: "Your inheritance is time. It is capital far more precious than any lands or stocks or houses you will ever get. Spend it foolishly, and you will bankrupt yourself and cheapen the inheritance of those that follow you. Invest it wisely, and you will bless generations to come. “A Child of Promise”, BYU Speeches, 4 May 1986

We do not need to be rational and scientific when it comes to the details of our daily life—only in those that can harm us and threaten our survival. Modern life seems to invite us to do the exact opposite; become extremely realistic and intellectual when it comes to such matters as religion and personal behavior, yet as irrational as possible when it comes to matters ruled by randomness (say, portfolio or real estate investments). I have encountered colleagues, “rational,” no-nonsense people, who do not understand why I cherish the poetry of Baudelaire and Saint-John Perse or obscure (and often impenetrable) writers like Elias Canetti, J. L. Borges, or Walter Benjamin. Yet they get sucked into listening to the “analyses” of a television “guru,” or into buying the stock of a company they know absolutely nothing about, based on tips by neighbors who drive expensive cars.

He gave a talk in which he argued that the way they measured risk was completely idiotic. They measured risk by volatility: how much a stock or bond happened to have jumped around in the past few years. Real risk was not volatility; real risk was stupid investment decisions.

You can imagine how distraught I feel when I hear about the glorified heroism-free “middle class values,” which, thanks to globalization and the Internet, have spread to any place easily reached by British Air, enshrining the usual opiates of the deified classes: “hard work” for a bank or a tobacco company, diligent newspaper reading, obedience to most, but not all, traffic laws, captivity in some corporate structure, dependence on the opinion of a boss (with one’s job records filed in the personnel department), good legal compliance, reliance on stock market investments, tropical vacations, and a suburban life (under some mortgage) with a nice-looking dog and Saturday night wine tasting.

Entrepreneurship is when an individual retrieves a red hot idea from the creativity furnace without the constraint of the heat of lean resources, and with each persistent blow of the innovation hammer shapes the still malleable idea against the anvil of passion, vision, insight, strategy, and principles to forge a fitting vessel of a creative concern.

Basically, we view a portfolio in the same way that a gardener views a garden. Every business or asset in our portfolio is like a plant in a gardeners garden and is subject to similar expectations; growth, purpose, and productivity.

Shopping the equity market solely based on stock prices is like shopping for groceries solely based on food prices as opposed to the quality of the food. Price matters, but what really matters is the value that you get for the price.

Everybody who really makes money at some point owns a piece of a product, a business, or some IP. That can be through stock options if you work at a tech company. That’s a fine way to start. But usually, the real wealth is created by starting your own companies or even by investing. In an investment firm, they’re buying equity. These are the routes to wealth. It doesn’t come through the hours.

Wisdom is really the key to wealth. With great wisdom, comes great wealth and success. Rather than pursuing wealth, pursue wisdom. The aggressive pursuit of wealth can lead to disappointment. Wisdom is defined as the quality of having experience, and being able to discern or judge what is true, right, or lasting. Wisdom is basically the practical application of knowledge. Rich people have small TVs and big libraries, and poor people have small libraries and big TVs. Become completely focused on one subject and study the subject for a long period of time. Don't skip around from one subject to the next. The problem is generally not money. Jesus taught that the problem was attachment to possessions and dependence on money rather than dependence on God. Those who love people, acquire wealth so they can give generously. After all, money feeds, shelters, and clothes people. They key is to work extremely hard for a short period of time (1-5 years), create abundant wealth, and then make money work hard for you through wise investments that yield a passive income for life. Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand. Failure is success if we learn from it. Continuing failure eventually leads to success. Those who dare to fail miserably can achieve greatly. Whenever you pursue a goal, it should be with complete focus. This means no interruptions. Only when one loves his career and is skilled at it can he truly succeed. Never rush into an investment without prior research and deliberation. With preferred shares, investors are guaranteed a dividend forever, while common stocks have variable dividends. Some regions with very low or no income taxes include the following: Nevada, Texas, Wyoming, Delaware, South Dakota, Cyprus, Liechtenstein, Luxembourg, Panama, San Marino, Seychelles, Isle of Man, Channel Islands, Curaçao, Bahamas, British Virgin Islands, Brunei, Monaco, Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Bermuda, Kuwait, Oman, Andorra, Cayman Islands, Belize, Vanuatu, and Campione d'Italia. There is only one God who is infinite and supreme above all things. Do not replace that infinite one with finite idols. As frustrated as you may feel due to your life circumstances, do not vent it by cursing God or unnecessarily uttering his name. Greed leads to poverty. Greed inclines people to act impulsively in hopes of gaining more. The benefit of giving to the poor is so great that a beggar is actually doing the giver a favor by allowing the person to give. The more I give away, the more that comes back. Earn as much as you can. Save as much as you can. Invest as much as you can. Give as much as you can.

Home is the first point of investment. The first and most important thing to invest in is your home. Make sure your house is in good condition physically and energetically, make sure you’re paid up on the household bills, make sure you’re stocked up on supplies and food, make sure your home is furnished to your style and comfort, make sure you’ve got nice plants to clean the air, nice art, nice crystals and essential oils, nice things that promote your wellbeing…. Make sure your garden is growing nutritious plants. Invest in your household and your family because they have the greatest Return on Investment. And your investment in your home will be a magnet for many other different kinds of investments.

Two-thirds of professionally managed funds are regularly outperformed by a broad capitalization-weighted index fund with equivalent risk, and those that do appear to produce excess returns in one period are not likely to do so in the next. The record of professionals does not suggest that sufficient predictability exists in the stock market to produce exploitable arbitrage opportunities.

Peter Lynch doesn’t advise you to buy stock in your favorite store just because you like shopping in the store, nor should you buy stock in a manufacturer because it makes your favorite product or a restaurant because you like the food. Liking a store, a product, or a restaurant is a good reason to get interested in a company and put it on your research list, but it’s not enough of a reason to own the stock! Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, plans for expansion, and so forth.

There you stand, lost in the infinite series of the sea, with nothing ruffled but the waves. The tranced ship indolently rolls; the drowsy trade winds blow; everything resolves you into languor. For the most part, in this tropic whaling life, a sublime uneventfulness invests you; you hear no news; read no gazettes; extras with startling accounts of commonplaces never delude you into unnecessary excitements; you hear of no domestic afflictions; bankrupt securities; fall of stocks; are never troubled with the thought of what you shall have for dinner - for all your meals for three years and more are snugly stowed in casks, and your bill of fare is immutable. (Moby Dick chap 35 p 153)

Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook. More than that, some speculation is necessary and unavoidable, for in many common-stock situations there are substantial possibilities of both profit and loss, and the 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.

Basically, CEOs have five essential choices for deploying capital—investing in existing operations, acquiring other businesses, issuing dividends, paying down debt, or repurchasing stock—and three alternatives for raising it—tapping internal cash flow, issuing debt, or raising equity. Think of these options collectively as a tool kit. Over the long term, returns for shareholders will be determined largely by the decisions a CEO makes in choosing which tools to use (and which to avoid) among these various options. Stated simply, two companies with identical operating results and different approaches to allocating capital will derive two very different long-term outcomes for shareholders.

In the mutual fund industry, for example, the annual rate of portfolio turnover for the average actively managed equity fund runs to almost 100 percent, ranging from a hardly minimal 25 percent for the lowest turnover quintile to an astonishing 230 percent for the highest quintile. (The turnover of all-stock-market index funds is about 7 percent.)

Look for growth situations with low price-earnings multiples. If the growth takes place, there’s often a double bonus—both the earnings and the multiple rise, producing large gains. Beware of very high multiple stocks in which future growth is already discounted. If growth doesn’t materialize, losses are doubly heavy—both the earnings and the multiples drop.

The global recession has exposed the Slowlane for the fraud it is. With no job, the plan fails. When the stock market loses 50% of your savings, the plan fails. When a housing crisis erases 40% of your illiquid net worth in one year, the plan fails. The plan is a failure because the plan is based on time and factors you can’t control. Unfortunately, millions of people have faithfully invested decades into the plan only to discover the ugly truth: The Slowlane is risky and insufferably impotent.

Your goal as an investor should be simply to purchase, at a rational price, a part interest in an easily understood business whose earnings are virtually certain to be materially higher, five, ten, and twenty years from now. Over time, you will find only a few companies that meet those standards-so when you see one that qualifies, you should buy a meaningful amount of stock.

A 10% loss in any investment can be recovered, not by 10%, but only by 11% gain. A 50% loss in any investment can be recovered only by 100% gain. And a 90% loss in any investment can be recovered only by a whopping 1,000% gain. Yes, all the above statements are true. Numbers can confuse the best of financial wizards. It needs a rare trait of common sense to unravel the mysteries of finance. For your investments: - Keep them Simple. - Avoid Jargons. - Exhibit Discipline. - Be Consistent. - Apply Common Sense

When the question is difficult and a skilled solution is not available, intuition still has a shot: an answer may come to mind quickly—but it is not an answer to the original question. The question that the executive faced (should I invest in Ford stock?) was difficult, but the answer to an easier and related question (do I like Ford cars?) came readily to his mind and determined his choice. This is the essence of intuitive heuristics: when faced with a difficult question, we often answer an easier one instead, usually without noticing the substitution.

Here is a key insight for any startup: You may think yourself a puny midget among giants when you stride out into a marketplace, and suddenly confront such a giant via litigation or direct competition. But the reality is that larger companies often have much more to fear from you than you from them. For starters, their will to fight is less than yours. Their employees are mercenaries who don’t deeply care, and suffer from the diffuse responsibility and weak emotional investment of a larger organization. What’s an existential struggle to you is merely one more set of tasks to a tuned-out engineer bored of his own product, or another legal hassle to an already overworked legal counsel thinking more about her next stock-vesting date than your suit. Also, large companies have valuable public brands they must delicately preserve, and which can be assailed by even small companies such as yours, particularly in a tight-knit, appearances-conscious ecosystem like that of Silicon Valley. America still loves an underdog, and you’ll be surprised at how many allies come out of the woodwork when some obnoxious incumbent is challenged by a scrappy startup with a convincing story. So long as you maintain unit cohesion and a shared sense of purpose, and have the basic rudiments of living, you will outlast, outfight, and out-rage any company that sets out to destroy you. Men with nothing to lose will stop at nothing to win.

Slavery is not a horror safely confined to the past; it continues to exist throughout the world, even in developed countries like France and the United States. Across the world slaves work and sweat and build and suffer. Slaves in Pakistan may have made the shoes you are wearing and the carpet you stand on. Slaves in the Caribbean may have put sugar in your kitchen and toys in the hands of your children. In India they may have sewn the shirt on your back and polished the ring on your finger. They are paid nothing. Slaves touch your life indirectly as well. They made the bricks for the factory that made the TV you watch. In Brazil slaves made the charcoal that tempered the steel that made the springs in your car and the blade on your lawnmower. Slaves grew the rice that fed the woman that wove the lovely cloth you've put up as curtains. Your investment portfolio and your mutual fund pension own stock in companies using slave labor in the developing world. Slaves keep your costs low and returns on your investments high.

The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell. It is far from certain that the typical investor should regularly hold off buying until low market levels appear, because this may involve a long wait, very likely the loss of income, and the possible missing of investment opportunities. On the whole it may be better for the investor to do his stock buying whenever he has money to put in stocks, except when the general market level is much higher than can be justified by well-established standards of value. If he wants to be shrewd he can look for the ever-present bargain opportunities in individual securities. Aside from forecasting the movements of the general market, much effort and ability are directed on Wall Street toward selecting stocks or industrial groups that in matter of price will “do better” than the rest over a fairly short period in the future. Logical as this endeavor may seem, we do not believe it is suited to the needs or temperament of the true investor—particularly since he would be competing with a large number of stock-market traders and first-class financial analysts who are trying to do the same thing. As in all other activities that emphasize price movements first and underlying values second, the work of many intelligent minds constantly engaged in this field tends to be self-neutralizing and self-defeating over the years. The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. He should never buy a stock because it has gone up or sell one because it has gone down. He would not be far wrong if this motto read more simply: “Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.” An

Professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that teach competitor has to pick not those faces which he himself finds prettiest, but those which he thinks likeliest to catch the fancy of the other competitors, all of whom are looking at the problem from the same point of view. It is not a case of choosing those which, to the best of one's judgement are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth and higher degrees.

What imperialists actually wanted was expansion of political power without the foundation of the body politic. Imperialist expansion had been touched off by a curious kind of economic crisis, the overproduction of capital and the emergence of "superfluous" money, the result of oversaving, which could no longer find productive investment within national borders. For the first time, investment of power did not pave the way for investment of money, since uncontrollable investments in distant countries threatened to transform large strata of society into gamblers, to change the whole capitalist economy from a system of production to a system of financial speculation, and to replace the profits of production with profits in commissions. The decade immediately before the imperialist era, the seventies of the last century, witnessed an unparalleled increase in swindles, financial scandals, and gambling in the stock market.

We have been conditioned since birth with the belief that satisfaction of these inner needs comes through our interaction with the world. We seek inner fulfillment through what we have or what we do, through the experiences the world provides, and through the ways others behave toward us. This is the meme that governs so much of our thinking and behavior: the meme that says whether or not we are content with life depends on what we have and what we do. Prevalent as this meme may be, it seldom provides any lasting satisfaction. A person may gather a great deal of wealth, but is he really more secure? More than likely, he will soon find new sources of insecurity. Are my investments safe? Will the stock market crash? Can I trust my friends? Should I employ “security” companies to protect my possessions?

Besides, those whose suffering is due to love are, as we say of certain invalids, their own physicians. As consolation can come to them only from the person who is the cause of their grief, and as their grief is an emanation from that person, it is there, in their grief itself, that they must in the end find a remedy: which it will disclose to them at a given moment, for as long as they turn it over in their minds this grief will continue to show them fresh aspects of the loved, the regretted creature, at one moment so intensely hateful that one has no longer the slightest desire to see her, since before finding enjoyment in her company one would have first to make her suffer, at another so pleasant that the pleasantness in which one has invested her one adds to her own stock of good qualities and finds in it a fresh reason for hope.

Would you believe me if I told you that there’s an investment strategy that a seven-year-old could understand, will take you fifteen minutes of work per year, outperform 90 percent of finance professionals in the long run, and make you a millionaire over time?   Well, it is true, and here it is: Start by saving 15 percent of your salary at age 25 into a 401(k) plan, an IRA, or a taxable account (or all three). Put equal amounts of that 15 percent into just three different mutual funds:   A U.S. total stock market index fund An international total stock market index fund A U.S. total bond market index fund.   Over time, the three funds will grow at different rates, so once per year you’ll adjust their amounts so that they’re again equal. (That’s the fifteen minutes per year, assuming you’ve enrolled in an automatic savings plan.)   That’s it; if you can follow this simple recipe throughout your working career, you will almost certainly beat out most professional investors. More importantly, you’ll likely accumulate enough savings to retire comfortably.

But money doesn’t work in the sense that labor or tangible capital expends effort to produce commodities. Credit is debt, and debt extracts interest. Financial salesmen who promise investors, “Make your money work for you” actually mean that society should work for the creditors — and that means for the banks that create credit. The effect is to turn the economic surplus into a flow of interest payments, diverting revenue from tangible capital investment. As the economy’s reproductive powers are dried up, the financialization process is kept going by easing credit terms and lending — not to produce more goods and services, but to bid up prices for the real estate, stocks and bonds being pledged as collateral for larger and larger loans.

Investment Owner’s Contract I, _____________ ___________________, hereby state that I am an investor who is seeking to accumulate wealth for many years into the future. I know that there will be many times when I will be tempted to invest in stocks or bonds because they have gone (or “are going”) up in price, and other times when I will be tempted to sell my investments because they have gone (or “are going”) down. I hereby declare my refusal to let a herd of strangers make my financial decisions for me. I further make a solemn commitment never to invest because the stock market has gone up, and never to sell because it has gone down. Instead, I will invest $______.00 per month, every month, through an automatic investment plan or “dollar-cost averaging program,” into the following mutual fund(s) or diversified portfolio(s): _________________________________, _________________________________, _________________________________. I will also invest additional amounts whenever I can afford to spare the cash (and can afford to lose it in the short run). I hereby declare that I will hold each of these investments continually through at least the following date (which must be a minimum of 10 years after the date of this contact): _________________ _____, 20__. The only exceptions allowed under the terms of this contract are a sudden, pressing need for cash, like a health-care emergency or the loss of my job, or a planned expenditure like a housing down payment or a tuition bill. I am, by signing below, stating my intention not only to abide by the terms of this contract, but to re-read this document whenever I am tempted to sell any of my investments. This contract is valid only when signed by at least one witness, and must be kept in a safe place that is easily accessible for future reference.

Did we win?” “I’m here, aren’t I?” He must be running. Her body jounced painfully against his chest with every lurching step. He needed his cane. “I don’t want to die.” “I’ll do my best to make other arrangements for you.” She closed her eyes. “Keep talking, Wraith. Don’t slip away from me.” “But it’s what I do best.” He clutched her tighter. “Just make it to the schooner. Open your damn eyes, Inej.” She tried. Her vision was blurring, but she could make out a pale, shiny scar on Kaz’s neck, right beneath his jaw. She remembered the first time she’d seen him at the Menagerie. He paid Tante Heleen for information – stock tips, political pillow talk, anything the Menagerie’s clients blabbed about when drunk or giddy on bliss. He never visited Heleen’s girls, though plenty would have been happy to take him up to their rooms. They claimed he gave them the shivers, that his hands were permanently stained with blood beneath those black gloves, but she’d recognised the eagerness in their voices and the way they tracked him with their eyes. One night, as he’d passed her in the parlour, she’d done a foolish thing, a reckless thing. “I can help you,” she’d whispered. He’d glanced at her, then proceeded on his way as if she’d said nothing at all. The next morning, she’d been called to Tante Heleen’s parlour. She’d been sure another beating was coming or worse, but instead Kaz Brekker had been standing there, leaning on his crow-head cane, waiting to change her life. “I can help you,” she said now. “Help me with what?” She couldn’t remember. There was something she was supposed to tell him. It didn’t matter any more. “Talk to me, Wraith.” “You came back for me.” “I protect my investments.” Investments. “I’m glad I’m bleeding all over your shirt.” “I’ll put it on your tab.” Now she remembered. He owed her an apology. “Say you’re sorry.” “For what?” “Just say it.” She didn’t hear his reply.

The problem with fiat is that simply maintaining the wealth you already own requires significant active management and expert decision-making. You need to develop expertise in portfolio allocation, risk management, stock and bond valuation, real estate markets, credit markets, global macro trends, national and international monetary policy, commodity markets, geopolitics, and many other arcane and highly specialized fields in order to make informed investment decisions that allow you to maintain the wealth you already earned. You effectively need to earn your money twice with fiat, once when you work for it, and once when you invest it to beat inflation. The simple gold coin saved you from all of this before fiat.

She remembered the first time she’d seen him at the Menagerie. He paid Tante Heleen for information—stock tips, political pillow talk, anything the Menagerie’s clients blabbed about when drunk or giddy on bliss. He never visited Heleen’s girls, though plenty would have been happy to take him up to their rooms. They claimed he gave them the shivers, that his hands were permanently stained with blood beneath those black gloves, but she’d recognized the eagerness in their voices and the way they tracked him with their eyes. One night, as he’d passed her in the parlor, she’d done a foolish thing, a reckless thing. “I can help you,” she’d whispered. He’d glanced at her, then proceeded on his way as if she’d said nothing at all. The next morning, she’d been called to Tante Heleen’s parlor. She’d been sure another beating was coming or worse, but instead Kaz Brekker had been standing there, leaning on his crow-head cane, waiting to change her life. “I can help you,” she said now. “Help me with what?” She couldn’t remember. There was something she was supposed to tell him. It didn’t matter anymore. “Talk to me, Wraith.” “You came back for me.” “I protect my investments.” Investments. “I’m glad I’m bleeding all over your shirt.” “I’ll put it on your tab.” Now she remembered. He owed her an apology. “Say you’re sorry.” “For what?” “Just say it.

I carried with me into the West End Bar, the White Horse Tavern, a long list of things I would never do: I would never have my hair set in a beauty parlor. I would never move to a suburb and bake cakes or make casseroles. I would never go to a country club dance, although I did like the paper lanterns casting rainbow colors on the terrace. I would never invest in the stock market. I would never play canasta. I would never wear pearls. I would love like a nursling but I would never go near a man who had a portfolio or a set of golf clubs or a business or even a business suit. I would only love a wild thing. I didn't care if wild things tended to break hearts. I didn't care if they substituted scotch for breakfast cereal. I understood that wild things wrote suicide notes to the gods and were apt to show up three hours later than promised. I understood that art was long and life was short.

Because by definition they lack any such sense of mutuality or wholeness, our specializations subsist on conflict with one another. The rule is never to cooperate, but rather to follow one's own interest as far as possible. Checks and balances are all applied externally, by opposition, never by self-restraint. Labor, management, the military, the government, etc., never forbear until their excesses arouse enough opposition to force them to do so. The good of the whole of Creation, the world and all its creatures together, is never a consideration because it is never thought of; our culture now simply lacks the means for thinking of it. It is for this reason that none of our basic problems is ever solved. Indeed, it is for this reason that our basic problems are getting worse. The specialists are profiting too well from the symptoms, evidently, to be concerned about cures -- just as the myth of imminent cure (by some 'breakthrough' of science or technology) is so lucrative and all-justifying as to foreclose any possibility of an interest in prevention. The problems thus become the stock in trade of specialists. The so-called professions survive by endlessly "processing" and talking about problems that they have neither the will nor the competence to solve. The doctor who is interested in disease but not in health is clearly in the same category with the conservationist who invests in the destruction of what he otherwise intends to preserve. The both have the comfort of 'job security,' but at the cost of ultimate futility. ... This has become, to some extent at least, an argument against institutional solutions. Such solutions necessarily fail to solve the problems to which they are addressed because, by definition, the cannot consider the real causes. The only real, practical, hope-giving way to remedy the fragmentation that is the disease of the modern spirit is a small and humble way -- a way that a government or agency or organization or institution will never think of, though a person may think of it: one must begin in one's own life the private solutions that can only in turn become public solutions.