naved-abdali Quotes About investment

“There is no guarantee that all investments will result in profits, but a carefully chosen portfolio of assets is highly likely to grow over time.”

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Author:Naved Abdali

“Compounding has a snowball effect. It is just a tiny ball of snow at the very start, but it can turn into an avalanche over time.”

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Author:Naved Abdali

“The most important thing is to invest. The second most important thing is to buy well.”

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Author:Naved Abdali

“The total return of a property that can be rented can easily beat any other investment type. The combined rate of return of capital appreciation and rental income is substantially better.”

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Author:Naved Abdali

“To accumulate any wealth, you must invest at a growth rate higher than inflation.”

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Author:Naved Abdali

“You must start investing as early as possible. Yesterday was better than today, and today is better than tomorrow. Don’t wait for a significant market drop.”

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Author:Naved Abdali

“Market prices only matter at two points of time in the investment life cycle. First when you buy and second when you sell. In between these two points, value matters.”

Investment Investing Value Price Markets Valuation

Author:Naved Abdali

“The number one reason people lose money in investing is because they buy assets without giving any thought whatsoever to the fair value.”

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Author:Naved Abdali

“If investors do not know or never attempt to know the fair value, they can pay any price. More often, the price they pay is far greater than the actual value.”

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Author:Naved Abdali

“Watching every tick up and every tick down is just wasting your valuable time. Do yourself a favor, and pick up a book or two about investing each month.”

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Author:Naved Abdali

“An ounce of gold will always be an ounce of gold regardless of the length of possession. The short-term value will go up or down, but gold prices will follow the general inflation rate in the long run.”

Gold Investment Value Inflation Price Valuation Wealth Management

Author:Naved Abdali

“A Collectible’s value is primarily based on the emotions and the perception of potential buyers.”

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Author:Naved Abdali

“It is challenging for a human brain to distinguish between noises and threats if a considerable value is at stake.”

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Author:Naved Abdali

“If you have some working knowledge of business and accounting and have a lot of patience to ride out market ups and downs, you can be a stock picker. You just need to understand that stocks are proportionate ownership of earning businesses.”

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Author:Naved Abdali

“A considerable part of our emotional realities is often made up by our minds.”

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Author:Naved Abdali

“Traders and investors are humans, full of emotions, behavior biases, and good and bad past experiences. We don’t have much control over psychological shortcomings, and we routinely make decisions contaminated with our emotions and biases.”

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Author:Naved Abdali

“This tendency of overconfidence and poor outcomes is not confined to only retail investors. Institutional investors suffer from overconfidence equally if not more, and their investment results are not superior either.”

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Author:Naved Abdali

“All of us need to invest our capital to achieve financial freedom, but most of us are not equipped with the soul and skills to have concentrated portfolios.”

Investment Investing Capital Diversification Concentrated Portfolio

Author:Naved Abdali

“Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.”

Investment Investing Capital Bonds Stock Shares Mutual Funds

Author:Naved Abdali

“All common investments have a great feature; the maximum amount you can lose is your capital.”

Fear Risk Investment Investing Capital Financial Risk Capital Loss

Author:Naved Abdali

“Generally, a cheap stock is cheap for a reason. If you don’t know the reason, you will be better off investing your capital elsewhere.”

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Author:Naved Abdali

“All capital investments inherently suffer the risk of permanent capital loss. As an investor, it is your job to differentiate between market volatility and a permanent capital loss. You can only achieve this when you fundamentally understand why you bought the asset in the first place.”

Risk Investment Investing Trading Capital Markets Trading Psychology Stocks Volatility

Author:Naved Abdali

“When you invest in stocks or any other asset, your primary risk is the permanent loss of capital. Your secondary risk is a sub-par return, and that’s it. You don’t have any other risk.”

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Author:Naved Abdali

“The greatest fear of a professional investor, who manages money for a living, is capital withdrawals at the wrong time.”

Fear Investment Investing Capital Stocks Mutual Funds Bear Market

Author:Naved Abdali

“Money managers tend to make irrational decisions just to protect their calendar year performances, even if they believe that decision is not in the best interest of investors.”

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Author:Naved Abdali

“Individual investors have significant advantages over professional money managers. Retail investors, like you and I, have nobody to report. We have no benchmark to beat and have no fear of capital flight. There are no quarter and year ends, and performance is not linked to calendars.”

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Author:Naved Abdali

“Capital withdrawals by investors can torpedo investment strategies of money managers at the worst possible time.”

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Author:Naved Abdali

“Gold, paintings, or bitcoin are all examples of buying a bigger-idiot type of asset. You can be lucky and find a bigger idiot most of the time, but if you consistently play the same game, once in a while you will be the biggest idiot. You will find yourself holding the bag all the way down to market bottoms.”

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Author:Naved Abdali

“Your decision to invest, or not to invest, should be based on pure economics. There is no moral obligation to invest. For moral causes, do charity, do not make investments.”

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Author:Naved Abdali

“Predicting a downturn is not critical. The important thing is what you do when a significant downturn happens.”

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Author:Naved Abdali

“If the prices were the motivation for buying, all future behavior and decisions would be based on price action.”

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Author:Naved Abdali

“One emotionally-driven investment that causes massive losses is enough to keep you away from all investments for life.”

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Author:Naved Abdali

“Investments are not a lottery; if it feels like the lottery, stay away from it.”

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Author:Naved Abdali

“You must know as a rule that no investment is a once-in-a lifetime opportunity.”

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Author:Naved Abdali

“To be a successful investor, you don't need to take excessive risks and be involved in all sorts of financial instruments. You need to understand your risk appetite and understand a few asset classes well. Stay within your boundaries, and your wealth will grow at a decent pace.”

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Author:Naved Abdali

“Putting money in a savings account is not going to make anybody rich. It is making the depositors poor every day if you count the inflation.”

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Author:Naved Abdali

“An investment business has certain risks, and your job as an investor is not to eliminate all risks but to manage and minimize them.”

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Author:Naved Abdali

“No investment is without risks, and no opportunity is guaranteed. Nothing is certain. And if somebody claims it, stay away from that person.”

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Author:Naved Abdali

“Leveraging is not evil but must be used with extreme caution and care. You must understand that over-leveraging is the prime reason for all market blowups.”

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Author:Naved Abdali

“Your investment in a bank account is as secure as your bank is. If your bank goes bankrupt, so does your investment.”

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Author:Naved Abdali

“The advantage of the information-bias in favor of professional money-managers and large investors is almost irrelevant for a long-term investor.”

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Author:Naved Abdali

“Recessions are there to take your investment game to the next level. A recession should help you reach your targets sooner.”

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Author:Naved Abdali

“No amount of diversification can replace investment research. If you want to invest, you have to learn.”

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Author:Naved Abdali

“Proper diversification can be achieved with a handful of assets. On the other hand, a poorly selected portfolio with hundreds of stocks and bonds can be inadequate for diversification purposes.”

Risk Investment Investing Diversification Portfolio Management Stock Shares

Author:Naved Abdali

“Every all-time high of the stock market proves that the market has eventually recovered from all downturns, 100% of the time. This strategy is the only one that worked every time without a single failure for centuries.”

Strategy Investment Markets Portfolio Management Stock Shares

Author:Naved Abdali

“If you have invested an equal amount in Apple and 1,000 other companies at their inception and all other companies go bankrupt, you are still in profit. This is the power of unlimited gain possibilities and limited loss.”

Investment Investing Trading Stocks Portfolio Management Shares Wealth Management

Author:Naved Abdali

“Cash and bank deposits are not risk-free investments. They suffer substantial hidden risks like inflation, credit, and foreign exchange.”

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Author:Naved Abdali

“Precious metals are a little better than cash but still a terrible investment from a long-term investor’s perspective.”

Gold Investment Investing Portfolio Management Gold Investment

Author:Naved Abdali

“The most significant benefit of a diversified portfolio is psychological stability when you need it the most.”

Investment Investing Trading Diversification Portfolio Management Stock Shares

Author:Naved Abdali

“It is a misconception that diversification will magically reduce the losses. It cannot be far from the truth. Diversification does not reduce losses but provides a weighted average return of your portfolio.”

Investment Investing Trading Diversification Stocks Portfolio Management Shares Portfolio Performance

Author:Naved Abdali

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