“A modest rate-of-return can accumulate a fortune over time. You don’t need to beat the market, do over-leveraging, or pick the best stock to be rich. You just need to earn a decent rate-of-return and let your money compound overtime.” WealthInvestingMarketsLeverageStockSharesWealth BuildingWealth ManagementCompounding 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.” WealthInvestmentMarketsStockSharesPortfolioCompounding Author:Naved Abdali
“A steady upward trajectory is the only logical path for the stock market because shares are proportionate ownerships in profit-making businesses, and over time profit accumulates.” WealthMoneyBusinessMarketsStockSharesWealth AccumulationPortfolioS P 500 Author:Naved Abdali
“The funny thing about using the last transaction price as a proxy for the fair value is; that even the two people, buyer, and seller, who caused the transaction do not agree that the transaction price is the fair value of that stock. They have opposite views about the real value.” ValuePriceInvestValuationStocksStockSharesFair Value Author:Naved Abdali
“Always remember, the minority dictates the price. A company may have billions of shareholders, but it only takes one shareholder to change the price.” ValuePriceInvestStock MarketTrading PsychologyStockSharesPortfolio Author:Naved Abdali
“If your bull case to buy a stock is “a sharp price drop” or "price is going to the moon”, you don’t have a bull case.” ValuePriceMarketTrading PsychologyStocksStockSharesBull Trap 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.” BusinessKnowledgeLearningInvestmentInvestingTradingMarketsTrading PsychologyStockShares Author:Naved Abdali
“Nothing wrong with buying high PE stocks; however, expected business growth must justify the high price.” GrowthBusinessPriceInvestStockSharesPrice To Earning Author:Naved Abdali
“Capital efficiently and frequently flows between bonds and stocks. It pays to keep an eye on yields offered by these markets.” TradingCapitalMarketsInvestBondsStockShares Author:Naved Abdali
“Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.” InvestmentInvestingCapitalBondsStockSharesMutual Funds 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.” InvestmentInvestingTradingCapitalTrading PsychologyStockShares 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.” RiskInvestmentInvestingTradingCapitalStock MarketTrading PsychologyFinancial RiskStockShares Author:Naved Abdali
“in a rising price environment, party culture and a gambling mindset take over. People think it is easy to make money, and it is fun. The stock market is a big giant casino where the odds are in favor of gamblers. The more you play, the more you win. However, the facts are precisely the opposite.” GamblingBubblesPriceMarketsStock MarketTrading PsychologyStockShares Author:Naved Abdali
“It is a common misconception that if you diversify, you don’t need to learn anything. Just buy a bunch of stocks, and you will be good. Nothing can be further from the truth.” TradingInvestMarketDiversificationPortfolio ManagementStockShares 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.” RiskInvestmentInvestingDiversificationPortfolio ManagementStockShares 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.” StrategyInvestmentMarketsPortfolio ManagementStockShares Author:Naved Abdali
“The stock market, as a whole, has and will recover from every downturn.” MarketsInvestStock MarketPortfolio ManagementStockShares Author:Naved Abdali
“The most significant benefit of a diversified portfolio is psychological stability when you need it the most.” InvestmentInvestingTradingDiversificationPortfolio ManagementStockShares Author:Naved Abdali
“In concentrated portfolios, market fluctuations are magnified. All market noises look like real events.” MarketsStock MarketDiversificationPortfolio ManagementStockSharesWealth ManagementFinancial RisksConcentrated Portfolio Author:Naved Abdali
“Stocks are not market tickers represented by daily quotes but proportionate ownership of businesses and should be viewed accordingly.” BusinessInvestingTradingMarketsTrading PsychologyStockSharesMarket Cycle Author:Naved Abdali