5 Value Investing Quotes That Will Make You Think Differently

Just wave the wand and boom! You are rolling in money.

But when I took a look at the stock markets, I realized there was no magic. Everything is logical. Like any other business, you have to spend effort or money to gain market share.

Do the detailed analysis or pay someone who can do it for you. Like any other business, even in the stock markets, knowledge comes from experience.

And we know that in life, the guidance that comes with experience matters the most.

With that in mind, we bring you the 5 investment quotes from seasoned investors that will change your thinking for good.

These value investing quotes are still relevant today. Let’s start…

#1 We don’t need to be smarter than others. We must be more disciplined than others. –Warren Buffett

Known as the “Oracle of Omaha”, Warren Buffett has given many important tips to investors. In it, he emphasizes the importance of consistency over intelligence.

Whenever we talk about investing in the stock market, we subconsciously want to be the smart ones. We can invest in a stock that is the best in all respects and undiscovered and make money that no one else can.

But we forget that if no one can, it means that this kind of gain does not exist! We all want big wins, but we ignore the power of small, regular wins.

By running behind this mirage of being the smartest, we often expose ourselves to high risks.

A stock that is well known and makes small but consistent gains is much better than a stock that is not well known and could yield huge profits.

This value investing quote has a lot to do with discipline. Many times you will have the chance to take a different path (than the one you would follow). It is at times like these that this quote would come in handy.

Be disciplined and follow a solid investment process no matter what. You will probably do well.

Warren Buffett, CEO of Berkshire Hathaway, is one of the world’s most successful investors. He has appeared in the list of the richest men in the world several times.

#2 Being a value investor means looking down before looking up – Li Lu

This quote is one of the most relevant quotes of current times.

In 2022, markets have been volatile. They bled red. People are screaming out loud that their good morning isn’t good anymore because every morning they wake up with their wallets at new lows.

But at the same time, value investors rejoiced.

They rejoiced because they had looked at the downside – the risk of the stock price falling, before looking at the gains – the stock gains.

“What’s the worst that can happen?” and if the worst comes, “Can I bear the worst?”

Before investing in a stock, if you answer these two questions, you will never panic when the tables turn. Expect the best, but prepare for the worst.

Li Lu is a value investor, businessman and philanthropist. He is the founder and chairman of Himalaya Capital. Himalaya Capital is a multi-billion dollar investment firm that makes long-term investments in Asia and the United States.

#3 It’s not how much money you make, it’s how much money you keep, how well it works for you, and how many generations you can keep it. –Robert Kiyosaki

We have heard stories of how someone was extremely wealthy in his day, but his future generations now lead a life of hardship.

It happens when people have the business savvy to make money, but not the foresight to make the money work.

Having a good source of income is not enough. When investing, it is equally important to understand how this source will not run out and to have backups in case the source dies.

If you only earn for yourself, your job is only half done. You should be able to generate wealth for generations to come.

Finding stocks that will generate wealth for you and your grandsons is the key to successful investing. It’s easier said than done, but not impossible.

Robert Kiyosaki is a successful businessman and New York Times bestselling author. He is the author of the famous book Rich Dad Poor Dad – often called the #1 personal finance book. He is the founder of Rich Global LLC and Rich Dad.

#4 Know what you own and why you own it. –Peter Lynch

A fundamental mistake made by an average investor while investing in the stock market is that the investor does not study the company.

We are used to following the stock price and not following the performance of the company over the years. It can lead to occasional luck gains by chance, but that’s not investing.

When you buy a stock, you need to have a complete picture of the company’s business. You should get a glimpse of the future the company envisions for itself. This is called investing.

Buying a share is like owning the business. An owner must be aware of what he owns.

Another aspect is why you own the business. Do you trust the company to do well? Do you believe the business will experience the same or greater growth in the future?

An investor must have answers to all of these questions to be successful.

Peter Lynch is one of the most inspiring and successful investors of all time. He was manager of Magellan Funds at Fidelity Investments from 1977 to 1990. During those 13 years he gained a lot from the business and retired at the age of 46!

#5 The individual investor must act consistently as an investor and not as a speculator. –Ben Graham

What better way to end this with a value investing quote from the father of value investing himself!

We invest money in the financial markets with an expectation of profit. Gambling means playing games of chance with money.

A speculator will buy a stock because he thinks the stock price will rise. But an investor expects the business to grow in the future, the business will make profit and he will also earn from the business.

The investor has reasons to buy what he brought. He doesn’t just hope that prices will go up.

To speculate is to bet on prices. Investing means trusting the management and the activity of the company. An investor must at all times believe that his investment is worth more money than he invested.

Now we all know that, but the problem is that we forget. A drastic move in stocks and most investors turn into speculators.

Therefore, an investor must make considerable efforts to be an investor consistently.

The five lessons at a glance…

– Consistency rather than perfection.

-Protect the cons and the pros will take care of itself.

-Creation of long-term wealth rather than short-term lucrativeness.

-Pay attention to fundamentals, not prices.

– Invest, not speculate!

If someone wants to win in the stock market for a long time, they should keep these five lessons in mind.

Doing a detailed study and sharing the market gains will follow automatically. Of course, studying a business, its management and its future is difficult and tedious.

But good things don’t come easy and they take time, right?

For more on investing, stay tuned to Equitymaster.

Disclaimer: This article is provided for informational purposes only. This is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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