The crazy thing about the past year in the market is not that an eight-year bull run has been extended another year, which is pretty good, but that it has sped up, running faster than anyone expected after Donald Trump was elected president.
Investors, and anyone riding the market for that matter, need to be wary about any downside risks and ready to brave the market’s ebbs and flows. To steel your spine against wavering when the market looks shaky, ThinkAdvisor has collected the sage advice of some of the world’s greatest investors and risk takers. Enjoy!
"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."
- Peter Lynch, American investor, mutual fund manager and author.
“If past history was all that is needed to play the game of money, the richest people would be librarians.”
– Warren Buffett, American business magnate, CEO of Berkshire Hathaway and investor.
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”
– Seth Klarman, American investor and hedge fund manager known as a value investor.
"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."
– Robert Kiyosaki, American businessman, founder of the Rich Dad Company, and author of “Rich Dad Poor Dad.”
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
– Benjamin Graham, was a British-born American investor, economist and professor, known as the “father of value investing.”
"It's waiting that helps you as an investor, and a lot of people just can't stand to wait. If you didn't get the deferred-gratification gene, you've got to work very hard to overcome that.”
– Charles Munger, American investor, vice chairman of Berkshire Hathaway, and author.
“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker – you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do. The back and forth that goes on in the investment process helps you get at that.”
– Joel Greenblatt, American hedge fund manager, investor, writer and professor.
“Historically, there has been a bull market in the commodities every 20 or 30 years.”
– Jim Rogers, American businessman, Chairman of Rogers Holdings and Beeland Interests, Inc., investor and author.
“Great investors need to have the right combination of intuition, business sense and investment talent”
– Andrew Lo, author and professor.
"To be a better investor, you have to stand on your own. You just can't copy other people's insights."
– Li Lu, Chinese-born American investment banker, hedge fund manager, founder and Chairman of Himalaya Capital Management.
“Most people give up just when they are about to achieve success. They quit on the one-yard line. They give up at the last minute of the game, one foot from a winning touchdown.”
– Henry Ross Perot, American businessman and billionaire.
“If you are bearish or bullish long enough, you will eventually be right.”
"Ick investing means taking a special analytical interest in stocks that inspire a first reaction of 'ick.' I tend to become interested in stocks that by their very names or circumstances inspire unwillingness -- and an 'ick' accompanied by a wrinkle of the nose on the part of most investors to delve any further."
– Michael Burry, American physician, investor and hedge fund manager.
“I don’t think there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature.”
– John D. Rockefeller, an American industrialist, business magnate and former U.S. senator from West Virginia.
“Anyone who is not investing now is missing a tremendous opportunity.”
– Carlos Slim, Mexican business magnate and investor.
"Someone asked me once if I could condense into five words the most important qualities needed for a good investor, and I replied: 'Motivation, humility, hard work, discipline.'"
– Mark Mobius, fund manager at Franklin Templeton Investments.
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