What makes stocks valuable in the long run isn't the market. It's the profitability of the shares in the companies you own. As corporate profits increase, corporations become more valuable and sooner or later, their shares will sell for a higher price.
Most people are under exposed to global assets, including foreign stocks, bonds and currencies.
So the first thing I learned about how to get superior performance is not to buy stocks that are near their lows, but to buy stocks that are coming out of broad bases and beginning to make new highs.
Women tend to have a better track record in investing - when they invest - than men do, because they tend to take a longer-term perspective. They tend to trade less. They tend to shift in and out of stocks or mutual funds less often.
Buy a business, don't rent stocks.
Unlike cheap stocks, inexpensive asset classes have a lower chance of big drawdowns (broad asset classes don't go to zero) and a higher probability of average or better returns.
If I were investing in oil and gas stocks, there is one question I would ask CEO's: What portion of your capital is going to have to go in to stay even
When people give away stocks based on forced selling or fear that is usually a great opportunity.
Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.
When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.
I don't think it makes any sense for an individual to invest in common stocks unless they know the company, work at the company, and so on.
The most important organ in the body as far as the stock market is concerned is the guts, not the head. Anyone can acquire the know-how for analyzing stocks.
They don't take eyeballs at the bank. Those who value stocks by eyeballs should go be ophthalmologists, not stock analysts. There is no cyberworld where reach trumps profits.
Buy stocks like you buy your groceries, not like you buy your perfume.
Gold and Silver have always had value, never gone to zero. Can you say the same for stocks and bonds?
"On Pat Hearne - He made money in stocks, and that made people ask him for advice. He would never give any. If they asked him point-blank for his opinion about the wisdom of their commitments he used a favorite race-track maxim of his: "You can't tell till you bet. ""
As long as you have markets, you'll have excesses. People went crazy with tulip bulbs. They went crazy with the South Sea Bubble, they went crazy internet stocks, they went crazy with the uranium stocks back when I was first getting started. I mean, you know, you're not going to change the human animal. And the human animal really doesn't get a lot smarter.
I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
I bought my first stock in 1942, in the summer of '42. I was 11 years old. And so 75 years have gone by. And I have never known what the market's going to do the next day. And that's not my game. My game is to decide whether I'm in the right economy, which America's definitely been ever since that time. The Dow has gone from 100 to 21,000 during that time. And no matter what the headlines say, or terrible things are happening - we were losing the war in the Pacific when I first bought stocks.
I don't think objectively we are in a tech bubble when tech stocks are at a 30 year low.
