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A Master Class in Wealth Creation…Based on Kick-Ass Quotes

I love quotes. These tiny bits of timeless wisdom convey vast amounts of knowledge in a mere sentence or two.

This week, I’ve boiled down the secrets to successful investing into a series of pithy expert sayings. Consider it a Master Class in wealth creation.

Let’s start with economist Jeremy Siegel, “Fear incites human action far more urgently than does the impressive weight of historical evidence.” 

Financial decisions made from fear (vs knowledge) never turn out well. As history reveals, after every crash, the market eventually surges. Yet fear has us selling at a loss, missing future gains.

According to wealthy industrialist J. Paul Getty, fear can be a buy signal. “Buy when everyone else is selling and hold until everyone else is buying.”

That’s not just a catchy slogan. It’s the very essence of successful investing.

Baron Rothschild was even more succinct: “The time to buy is when there’s blood in the streets.”

Our biggest risk is not the market tanking, but our emotional reaction.

As acclaimed investor Benjamin Graham pointed out: “The investor’s chief problem — and even his worst enemy — is likely to be himself.”

Author Nick Murray agrees: “Wealth isn’t primarily determined by investment performance, but by investor behavior.”

The best way to ensure you make smart decisions is to educate yourself. Unfortunately, as the brilliant investor Peter Lynch observed, “There seems to be an unwritten rule on Wall Street: If you don’t understand it, then put your life savings into it.”

Successful investing is quite simple, albeit unexciting: Put together a diversified portfolio, which you understand, and hold for the long term.

In truth, says Nobel winning economist Paul Samuelson, “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

Adds Vanguard founder John Bogle , “Don’t struggle to find the needle in the haystack. Just buy the haystack.” The haystack being ETFs or index funds, which Bogle invented.

Let’s conclude with a quote from a female (finally) who gets why we women need to understand investing. “Teach her about how money really works,” explained Carrie Schwartz-Pomerantz, “and she can change the world.”

And that is why we need to learn how investing really works, making decisions from knowledge, not fear, ignorance or habit!!!

What’s your investing strategy? Or, if you don’t have one, how could you begin? Tell me in the comments below.

Comments & Feedback

  • Lisa

    I absolutely love to invest from a place of serendipity. I meet someone on a boring job and they tell me how they ended up where they are today. About their cancer, how it came back and how they got rid of it. They might tell me about how they used to be a stock broker and I’ll casually ask them why they quit their job as a stock broker and then I’ll ask them what kind of stock they would purchase right now if they could.

    Maybe, the following week, I might read in business section of the newspaper how this company that guy was telling me about just got purchased by GE. Then I might see advertisements from GE jumping out at me from everywhere. Then a friend of mine might talk about a product she recently purchased from GE.

    After that, I don’t rely on my hippy trippy instinct anymore, I turn to knowledge! I look at how the stock has historically been performing over the last 5 years and I read forcasts from analysts. Then I turn to people I know and trust who have had long success with money or managing other people’s money. Usually they’re happy to chat with me for free. If I run my idea by them and it’s a “yes” without hesitation, I know I’m onto a stable stock!

    My entire stock portfolio has been based on people I’ve met. I guess my stock portfolio represents a garden of people I’m growing!?! I could hire a financial advisor to choose stocks for me, but it wouldn’t be as fun. The stocks have spiked and dipped throughout the years, however none of the stocks have ever dropped below the original buy price. Sometimes I get a nice little dividend suprise and I use it to buy more stock. Probably, in a couple of years, I’ll meet with a finanacial advisor to analyse how I’m doing finanacially.

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Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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