“Investing is far more cumulative [than chess]. So long as you're sharp, you can do it for as long as you want.” WantLongCan DoInvestingChessYou Can Do ItCumulative Author:Patrick Wolff
“Investors... can't pick stocks that are better than average. Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them.” NeedsTwoCan DoTruth IsPicksSellsGood ThingsInvestingAverageTwo ThingsInvestorsWrong Time Author:Warren Buffett
“Finally, the illusions of validity and skill are supported by a powerful professional culture. We know that people can maintain an unshakeable faith in any proposition, however absurd, when they are sustained by a community of like-minded believers. Given the professional culture of the financial community, it is not surprising that large numbers of individuals in that world believe themselves to be among the chosen few who can do what they believe others cannot.” PeopleKnowsWorldBelieveCultureIndividualGivenCan DoCommunityPowerfulNumbersSkillsIllusionInvestingFinancialBelieverChosenAbsurdSurprisingPropositionsLarge NumbersValidity Book:Thinking, Fast and Slow Source: Thinking, Fast and Slow
“It's 1450 out of 1500 ETF funds that I just wouldn't touch because they're not diversified enough. Or they have some huge speculative twist to them that if you can guess the markets right you will do very well for a day or two but who can do that? Nobody.” IfsWellsTwoEnoughCan DoHugeInvestingFundTwists Author:John C. Bogle
“Losing some money is an inevitable part of investing, and there's nothing you can do to prevent it. But to be an intelligent investor, you must take responsibility for ensuring that you never lose most or all of your money.” Can DoLosesResponsibilityLosingIntelligentInvestingInevitableInvestorsTaking Responsibility Book:The Intelligent Investor: A Book of Practical Counsel Source: The Intelligent Investor: A Book of Practical Counsel
“There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.” KnowsHelpingCan DoRiskElementsSafetyInvestmentStriveInvestingAppropriateInvestorsMarginsBargainsDiscountsCushionsWhen Things Go Wrong Author:Seth Klarman