There’s so much to learn about investing. One of the best ways to understand the industry is to study some of the great investors and purveyors of financial knowledge. Here, we share 11 quotes by philosophers, businesspeople, and investors. We hope you learn something new and enjoy studying the history, context, and meaning behind these insightful quotes.
1. "An investment in knowledge pays the best interest." — Benjamin Franklin
This is such a good quote because it refers to educating yourself. Education is like a key that unlocks doors. This is true for all topics, but also for becoming a better and empowered investor. Financial literacy is crucial for diving into the investment world, and there are no better returns than those you gain from education.
2. "In investing, what is comfortable is rarely profitable." — Robert Arnott
This quote may not seem directly related to the first quote, but education is often the first foundational step in investing. As an investor, the word comfort may be synonymous with safety, which might mean taking little risk. When investing, it’s important to have an investment portfolio that aligns with your personal risk tolerance and goals, but you’re inevitably going to have to make decisions that might make you a little uncomfortable at times.
3. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen
While savings accounts are a great financial tool for keeping some of your money readily available for emergencies or near-term needs, they traditionally have low interest rates that contribute little to the long-term growth of wealth. While investing in stocks or bonds might not be as safe as a savings account, the risk that's taken has a higher long-term expected return.
4. "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
This is a great quote about protecting your wealth and making it work for you. Money and capital gains do you no good if you blow them all.
5. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson
There is certainly a thrill that comes from certain forms of investing, but the most successful investors value thoughtfulness and following a long-term investment strategy. Sometimes that long-term approach takes time to bare fruit. I see this as a way to focus on other things that matter most in life (family, friends, hobbies, etc.).
6. "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
History tells us a lot about how markets work. Understanding this history informs a good investment strategy.
7. "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
The reality of this quote can be quite humbling for an investor who needs to be "right" all of the time.
8. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." — Warren Buffett
Sometimes, when it comes to investing, simpler is better. It's easier too.
9. “Invest for the long haul. Don’t get too greedy and don’t get too scared.” — Shelby M.C. Davis
Investing in the market is a long-term play, and your portfolio should reflect your personal timelines.
10. “The intelligent investor is a realist who sells to optimists and buys from pessimists.” — Benjamin Graham
The financial markets are all about patience. Optimists will buy high, pessimists will sell low, and the intelligent investor capitalizes on both of these emotional decisions.
11. “Know what you own, and know why you own it.” – Peter Lynch
When it comes to quotes about investing, this one is a classic. It goes back to being financially literate and understanding your choices. Know the “why” behind your portfolio. Don’t hesitate to ask questions; your financial advisor is a part of your team and will be happy to help you understand what you’re investing in.
Did we miss any important quotes about investing? We would love to hear yours!
This content is developed from sources believed to be providing accurate information, and adapted from content provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.