Blog : 15 Sayings to Make You a Better Investor

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You can't jump over your own shadow.

Understanding your limitations keeps your focus on the ways you can realistically profit.  Don't keep swinging for the home run because it usually just increases your chances of striking out.

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Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.  John Templeton

Don't get left holding on when the euphoria kicks in.  This typically shows up when your grandma calls you to tell you about a hot stock you should invest in.

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Flip a coin 50 times and get "tails."  The chance of the next flip being tails is still 50%.  A coin has no memory.

Stop thinking a stock is a good value just because it is trading lower than it used to.  That has absolutely nothing to do with where it will go from here.

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If you chase two rabbits, both will escape.  Aboriginal proverb.

Focus on doing one thing well, not several things half-well.  The returns from that one thing will always outpace those of the total group or so-so results.

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Wealth is the product of man's capacity to think.  Ayn Rand

Money is one of the greatest inventions of mankind, and allows a chiropractor to have their house re-shingled, and that roofer in turn to take his family out to dinner, and that restaurant owner to in turn afford a television.  Money is NOT the root of all evil, but rather improves every aspect of our lives.

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Buy the rumor, sell the fact.

Speculation and expectation drive money into stocks.  Reality, when it eventually comes, is a time when investors often take money back out, often sending the share price lower.

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Buy snow shovels in the summer and tennis rackets in the winter.  Warren Buffett  

Investors always discount the wisdom in these words as they are so obvious and logical.  However, you should pay special attention to them exactly because they are so obvious and logical.  

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Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.  Warren Buffett  

Always trust yourself only.  When you listen to others about money, listen to the successful ones, and ignore the rest.

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The bulls get some, the bears get some, and the pigs get slaughtered.

Greed is the single biggest source of stock market losses.  Strike a balance between greed and fear, and watch your results improve.

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Sell in May and go away.

In many cases the warmest months have produced the smallest gains.  Consider taking the summer off from stock market stresses, you probably won't be missing much.

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You never go broke taking a profit.

Sometimes stocks will increase in price after you sell.  It sucks, it feels like a loss.  However, don't let that cloud your good judgement next time.  Do not focus on what could have been, because then you might miss the fact that you just made money.

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He who asks is a fool for five minutes.  He who doesn't is a fool forever.

Be a fool for five minutes.

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Don't confuse brains with a bull market.  Humphrey B. Neill

It's amazing to see how many people think they are good investors when the market is roaring along.

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Don’t rely on quotes of wisdom.  Peter Leeds

Sorry for the irony in that statement.  Think for yourself, learn like a sponge (but not a stinky, moldy one).

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The four most dangerous words in investing are "This time is different."  John Templeton

Spoiler alert!  This time is NOT different, most people just won't realize that until the very end.

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Share the knowledge! Pass this on to any who may benefit from the thoughts of the greatest minds. And if you have any words of wisdom that you would like us to add here, please drop by the Peter Leeds Newsletter and let us know.