Whether you’re new to the stock market or are a seasoned trader, there’s always something new to learn from the experts. Good investing advice is something that stands the test of time, so it’s always worthwhile reading up on what experts both old and new have to say about stocks and trading.
“The stock market is filled with individuals who know the price of everything and the value of nothing.” Phillip Fisher
This money management expert founded his own firm—Fisher & Company—in 1931 and ran it for nearly 70 years. Fisher left business school to start up the company, demonstrating that education isn’t necessarily the be-all and end-all of knowledge. And this particular quote highlights the fact that value is a hugely important concept in investing, and it’s often a more important consideration than price.
“In investing, what is comfortable is rarely profitable.” Robert Arnott
Entrepreneur and investor Robert Arnott is the founder and CEO of Research Affiliates, an investment management firm that manages over $160 billion in global assets. Arnott understands that getting out of your comfort zone is sometimes the key to making investments that pay off. But for the sake of your own peace of mind—and to make sure you’re not attempting investment strategies you’re not ready for—it’s a good idea to start out by taking small steps rather than giant leaps.
“Behind every stock is a company. Find out what it’s doing.” Peter Lynch
Peter Lynch is the man behind the mutual fund with the best 20-year return rate in history: the Fidelity Magellan Fund, which Lynch managed from 1977 to 1990. As a mutual fund manager, Lynch is well-acquainted with the need to understand what you’re investing in, and the ideal that making smart investments isn’t just about buying low and selling high. It’s also important to research your investment options, and research the companies you want to invest in, to ensure they’re offering a good value investment.
“In the business world, the rearview mirror is always clearer than the windshield.”
“If past history was all there was to the game, the richest people would be librarians.” Warren Buffet
Considered by many experts to be the world’s most successful investor, Warren Buffet has spent nearly 7 decades amassing a vast personal fortune as a well as building a strong reputation for business acumen, personal frugality, and philanthropy.
These two quotes from Buffet would seem to be contradictory, but in fact they complement each other very well. The first simply means that it’s a great deal easier to understand a past event than predict a future one, and it’s a reflection on the fact that understanding the market and researching companies you plan to invest in is a key part of investing. But the second quote is an important reminder that the lessons of the past aren’t the only consideration. Historical knowledge of the stock market isn’t valuable unless you’re also able to use that knowledge to make accurate predictions about the future.
