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5 Investment Quotes To Live By - YouTube
Channel: MeaningfulMoney
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investing is not about the assets you
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choose the time you invest
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the amount or the tax that you save it's
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about your behavior as an investor and
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today i want to give you five investing
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truths to memorize and to live by
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if you want to succeed
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hi folks and welcome back to the channel
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i came across a brilliant infographic
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the other day on the absolutely superb
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visual capital website i just love that
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site i'll put a link to it in the
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description so you can check it out for
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yourself this infographic has five
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quotes that should be understood by all
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investors and i loved it so much i
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thought
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i'll just make a video about that so
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let's get right on to quote number one
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the most important quality for an
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investor is temperament
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not intellect this is from the ceo of
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berkshire hathaway warren buffett
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arguably the greatest investor that's
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ever lived and it's encouraging right we
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haven't got to be smart to invest
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effectively we just need to know how to
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handle ourselves it means and i agree
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with this
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that the technical makeup of our
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investments
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is less of a factor in our success than
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our behavior towards those investments
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in practice that means not tinkering
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with our portfolios in volatile markets
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it means not worrying about the
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inevitable ups and downs that our
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portfolios will experience that's just
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the price of investing it also means
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that anybody can do this as long as they
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cultivate a healthy attitude towards
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money in general and their portfolios in
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particular on to quote number two the
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individual investor should act
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consistently as an investor and not as a
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speculator this is from benjamin graham
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who wrote the seminal work on investing
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called the intelligent investor and
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graham's work was a huge influence on
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warren buffett who we heard from just
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now so what is the difference between a
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speculator and an investor well a
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speculator is essentially betting
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they're usually all in on one
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winner takes all loser takes non-option
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if you're all in on crypto right now you
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are speculating not investing i'm not
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saying that's a bad thing it's your life
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but it is a fact an investor by contrast
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builds for the future they use the
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time-tested facts of compounding
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reinvesting dividends owning the great
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businesses of the world to build wealth
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over long periods of time they are
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patient not petulant they understand how
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money works they don't do the lottery or
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pin their hopes on an inheritance one
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day they build one brick on top of
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another investing monthly for 30 or 40
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years to build something incredibly
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resilient by the way if you're enjoying
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these so far don't forget to hit the
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like button
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subscribe to the channel if you're not
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already it really helps the channel to
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grow so thank you in advance for that on
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to quote number three the biggest risk
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of all is not taking one this is from
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melody hobson who is the co-ceo of
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aerial investments and also the
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chairwoman of starbucks risk is a word
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that most people are rightly wary of
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nobody wants to take an unnecessary risk
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i wouldn't carry a sack full of cash
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walking through a dodgy area to get to
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the bank i'd be dropped off right
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outside the door but we know that risk
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is an essential part of building wealth
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some might think that taking no risk by
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leaving our money safely in the bank for
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example is better than risking it on
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investments that actually isn't a
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risk-free option at all we are
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experiencing inflation risk for a start
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the risk that the buying power of our
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money will be less in future than it is
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now and so we need to understand that
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risk is multifaceted it really isn't
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just about the risk of markets and our
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investments going down that as we've
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said is a known outcome it's not risk at
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all it's going to happen fortune favors
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the brave who dares wins and all that
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risk can be understood and it can be
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quantified so that we know what risks we
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are taking better that certainly than
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erring towards what we think is safe and
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then losing money by stealth to
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inflation here's quote number four time
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in the market beats timing the market
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this is from ken fisher founder of
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fisher investments whose adverts you can
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find in literally every corner of the
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internet but it actually might be one of
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the most often quoted lines i've ever
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used because it's just so true the
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message here is that you can't possibly
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know what the trajectory of markets will
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be whether they will go up or down
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history shows us that given enough time
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markets will always rise so the key is
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to hold on for the long term and not try
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and beat the market by moving in and out
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of what we think might be good times so
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the market tanks you hold on for a while
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and then eventually you sell out you've
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had enough you don't want to take any
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more losses you tell yourself that you
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will reinvest when things are looking
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better the problem is is that this
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requires you to get two decisions right
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one when to get out and the other one to
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get back in and the odds are that in the
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process you will miss
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the best days of bouncing markets
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there's a great stat that says if you
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invested in the s p 500 index in the u.s
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in 1930
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and stayed invested for 90 years to 2020
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you would have a return of 17 thousand
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seven hundred and fifteen percent on
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your money but if you missed just the
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ten best days in the market in each
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decade your total return would have
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dropped to just twenty eight percent
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missing the best 90 days
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out of 90 years
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meant giving up 99.85 percent of your
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return and we can't know when those
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really great days will be so we
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shouldn't try and time the market we
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should just hang in there for the long
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haul and finally quote number five
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it's better to be roughly right than
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precisely wrong
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finally this is a quote from the
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so-called father of modern
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macroeconomics john maynard keynes
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and this speaks to the importance of
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spreading your money around if you
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choose five stocks to buy they had
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better be the right ones if not you're
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going to be regretting your life choices
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but if you buy 5 000 stocks perhaps
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through a tracker fund
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then some of those stocks will fail you
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will have been wrong about some of them
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but you'll have more right than wrong
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stocks and you will make money over time
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for me this is another argument in favor
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of passive overactive investing at least
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at the core of our portfolios we know
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that some companies will fail and others
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will fly but we can't possibly identify
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which those will be
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but if we hold them all
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then the winners should outnumber the
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losers and we'll do all right over time
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so there we have it five quotes to live
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by as investors have you got a favorite
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let me know in the comments and tell me
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why that one is your favorite what's
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that
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what's my favorite well for me it has to
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be number one by warren buffett the most
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important quality for an investor is
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temperament not intellect i find that
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super encouraging okay folks i hope it
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was helpful if it was please give the
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video a like for the algorithm subscribe
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to the channel if you haven't already it
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really helps so thank you so much and
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i'll see you in the next video
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