Investing quotes can be great lessons to learn from when you’re starting out in the world of investing. They really are tips from the greats who have been there and done it. When I first started investing I didn’t know anything including what compound interest was!
These are my top 20 investment quotes that really blew my mind and made me think differently about my mindset of investing. In the past, I thought it was risky and unattainable. Now I know its very real.
If you like any of the quotes below feel free to pin them for later so you can remember some of these key lessons from the greats.
Robert Kiyosaki Investing quotes
“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.”
Taken from his best selling book rich dad, poor dad. Its a really great read and great advice to not only personal finance but your mindset. I’ve found mindset is key to all aspects of life for true success.
In this lesson, Robert makes a really valid point, in that we tend to obsess over how much we make as opposed to what we do with it. You read a lot about famous celebrities earning millions of dollars only to end up bankrupt. You could be actually wealthier than someone who is making twice your salary if you save right and invest smartly.
“When you invest, you are buying a day that you don’t have to work.”
When I was in my twenties and people spoke about planning for retirement I didn’t listen. Now I know time is your best friend when it comes to investing in your future, whether that retirement or just investing, in general, you are shaving time off your working life.
So if you’re reading this knowing you would like to work less, then my friend you should seriously consider continually putting a portion of your earnings into investments!
Best John D. Rockefeller investing quotes
“The person who starts simply with the idea of getting rich won’t succeed; you must have a larger ambition.”
What John is saying here is that your dreams and ambitions need to be bigger than riches. You need to be passionate about what you are doing and align with your own values. Otherwise, you are likely to fall.
So if you are investing in companies you don’t really care about trying to make a quick buck, stop. Invest in what matters to you!
Best Tony Robbins Investing Quotes
“I love quotes… but in the end, knowledge has to be converted to action or it’s worthless.”
Action is key, you need to start somewhere. I put off investing for so long because I didn’t think I had enough money to make investing worthwhile. The truth is you can start small and keep building! I started with less than 100 and overtime kept growing it.
Bottom line don’t put investing off because you think you can’t everyone has to start somewhere and yes you might make mistakes but it’s all apart of the journey.
Robert G. Allen
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.”
So true! And for years I thought savings accounts were the only way and investing was for just the rich. You have to be willing to take risks if you want more for yourself and push yourself outside your comfort zone.
It’s still important to have savings in case of a rainy day but the surplus should be invested and savings accounts used really for emergency cash needed if there is an emergency.
Best Warren Buffett Investing Quotes
Where would investing be today without the great Warren Buffett? Here are some of his greatest quotes that I found powerful.
“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.”
This quote here taught me the power a great mindset can give you. Many would think share prices falling to get out but in fact, if you have invested right in the first place then this isn’t an issue.
What I mean by this is have you invested in companies you believe in? That you know have great management in place.
This is what Warren Buffett does and does it for the long term. Meaning when markets do slump, which happens at times there is no cause for panic or concern its actually a exciting opportunity to increase your position to secure the long term.
At the time of writing this article we are in the middle of the COVID crisis which is causing lots of companies to loose value but because I choose companies i know are stable I took Warren Buffett’s advice and increased my position.
“Risk comes from not knowing what you are doing”
When you invest in equity, risk is inherent. Mr. Buffett, however, reinforces that you, as an investor must be aware of what you are doing. This is possible only with sound knowledge. Buying businesses that you do not know of may lead you to be directionless. Rather, learn about the companies and their managements.
Ask yourself this question would you jump out of a plane without doing any training? I know I wouldn’t! This is the same for investing, you must do the research and build your knowledge.
Research is the basis of knowledge about companies you want to invest in. Understand how their business functions over the period of time and how does the company adapt to the situations. Buying stocks without knowing why you want to buy those stocks is a risk.
If you are wanting to get into the stock market there are lots of ways to boost your own knowledge when I first started I found reading helpful, I’ve listed a few of my favourites at the bottom of this article.
The other method I found really helpful and reassuring was joining a stock advisor service. The one I joined (and am still a member of) is Motley Fool stock advisor, for an annual fee they recommend stocks to invest in that they have already researched. This has made my investments much easier as I could read the research and decide for myself if it was worth it. You can see my full review here.
“Rule no. 1: Never lose money. Rule no. 2: Never forget rule number 1”
Probably one of Warren Buffett most well known quotes. On face value it seems straight forward, who wants to loose money after all? But the message is not so straight forward.
In the world of investing there are inevitably ups and downs, this is part of the game. But what Warren is pointing out here is that never take a risk that is so great that you will loose money. Decisions should be guided through your knowledge and research that you have put in before making a investment.
Taking excessive risks for no other reason than to get a “higher return” brings with it a massive range of possible outcomes, including the possibility of massive losses. This is what Warren avoids but making balanced decisions based on research and knowledge.
“Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it.”
I wish they would teach this lesson at school! Compound interest I wish I knew about sooner! It actually is a wonder of the world and I can’t believe I didn’t start saving earlier. I think I would have saved a lot more by now if I knew this fact.
What Einstein cleverly points out is if you understand compound interest then it can really affect your buying decisions. For instance, lets take buying a cup of coffee. Many of us would take it at face value of let’s say $5, but for those who understand compound interest and what else you could invest that $5 into. That same $5 invested could be worth $22 invested with compound interest in 15 years time.
So the question to ask yourself is would you pay $22 for a cup of coffee?
Benjamin Graham Investing quotes
Benjamin Graham, also known as the father of value investing, is someone whom we can all learn a lot from. Benjamin grahams teachings were crucial to the success of some of the greats we know today like Warren Buffett. In fact Warren actually said that Grahams book, the intelligent investor changed his life. Here are some of the quotes I take a lot from.
“Buy not on optimism, but on arithmetic.”
In my view this quote shows how much Buffett took from Graham, you can see they are aligned in their thinking. It very much saying again do your homework before you make any big investments.
This will stop mistakes and ensure you are investing with sound facts.
“The individual investor should act consistently as an investor and not as a speculator.”
If you want your investments to be successful in the long term then your time and energy is also crucial to this. It’s not just about cutting a check but also being involved so Graham learned. It also about doing your own research not just looking at what everything else is doing.
“If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.”
I thought this quote was really good and so true. I took a few things away:
- Don’t get caught up with brands like you wouldn’t with grocery, buy on value alone
- If quality is identical then focus on the price so you can get the best deal
- When buying think ahead, you don’t go to the grocery store every day you buy for the week ahead, so think about the future when you invest.
With a net worth of 1.7b I think its safe to say Charlie Munger knows a thing or too about investing wisely! I like his quotes because they are common sense and relatable to every aspect of life.
“Spend each day trying to be a little wiser than you were when you woke up.”
I’ve heard this a few times in different forms but truly believe it to be true. The best investment you can make is in yourself. So if you’re investing to find success then first invest in yourself.
Most people say time is the biggest barrier to this and I would agree but then I read the 5am club and realised time was my own barrier.
“Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world.”
Focus is key and something I know I have struggled with, Munger here makes a wise statement. Everyday there are innovations but do what’s relevant to you and don’t get caught up in everything or you could be at the risk of achieving nothing.
“No wise pilot, no matter how great his talent and experience, fails to use his checklist.”
Don’t get cocky! That’s what I took away from this. Keep yourself grounded and remember to follow the steps that have made you successful in the past. Be consistent with your approach and beliefs and eventually success will come your way.
Peter Lynch is the man that turned 18 million into 14 billion, he actually averaged a 29.2% return on his assests which is just incredible. Wouldn’t we all love to see that return?
Some of the quotes I love from Peter really show he is successful for a reason.
“Behind every stock is a company. Find out what it’s doing.”
Don’t just invest blindly, research the company. What does it do and can you see long term value in the future?
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part ownership of a business.”
This was probably my view of investing until I educated myself and continue to do so. I thought it was a pipe-dream and luck when people became wealthy from it and yes a similar view to the lottery.
Actually its not, and risk is not great when you educate yourself and do the homework on the businesses you choose to invest in. One of the ways I did this was subscribing to Fool’s Share advisor service for experts to help me with the homework part.
“If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored.”
There’s a common theme running with investing quotes no matter the expert and that is that you need to be familiar with the businesses that you are investing in.
Being so familiar that you can explain what is it about this company that excites you to be apart of! That’s right investing is exciting
“Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.”
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.”
Very true and you wouldn’t play a game of poker without looking at your cards. It seems all the greats have something in common which is do your home work!
There are lots of great lessons to be learned from the greats. And by just reading and thinking about what the investing quotes mean we can learn a lot about investing.
What do you think of my collection of investing quotes? Did they blow your mind? Let me know in the comments below.
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