Gentlemen who prefer bonds don't know what they're missing.
There seems to be an unwritten rule on Wall Street: If you don't understand it, then put your life savings into it. Shun the enterprise around the corner, which can at least be observed, and seek out the one that manufactures an incomprehensible product.
When even the analysts are bored, it's time to start buying.
I spend about fifteen minutes a year on economic analysis.
There's a company behind every stock and a reason companies - and their stocks - perform the way they do.
Equity mutual funds are the perfect solution for people who want to own stocks without doing their own research.
If all the economists in the world were laid end to end, it wouldn't be a bad thing.
The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
There are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling.
It would be wonderful if we could avoid the setbacks with timely exits, but nobody has figured out how to predict them.
Avoid hot stocks in hot industries.
Never buy anything that you can't illustrate on the back of a napkin.
The S&P is up 343.8 percent for 10 years. That is a four-bagger. The general equity funds are up 283 percent. So it's getting worse, the deterioration by professionals is getting worse. The public would be better off in an index fund.
Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.
Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.
When people discover they are no good at baseball or hockey, they put away their bats and their skates and they take up amateur golf or stamp collecting or gardening. But when people discover they are no good at picking stocks, they are likely to continue to do it anyway.
Well, I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one of two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people.
All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to no advantage.
If you have the stomach for stocks, but neither the time nor the inclination to do the homework, invest in equity mutual funds.
You just don't know when you can find the bottom.
Never invest in anything that cannot be illustrated with a crayon
My high-tech aversion caused me to make fun of the typical biotech enterprise: $100 million in cash from selling shares, one hundred Ph.D.'s, 99 microscopes, and zero revenues.
You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
If a picture is worth a thousand words, in business, so is a number.
When you start to confuse Freddie Mac, Sallie Mae and Fannie Mae with members of your family, and you remember 2,000 stock symbols but forget the children's birthdays, there's a good chance you've become too wrapped up in your work.
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