With Wall Street reaching new highs this year, investors may want to pause for a moment and re-assess their investment strategy and personal lifestyle, reaching for the wisdom of money masters and great philosophers.
The wisdom of Money Masters can help investors manage money effectively and avoid costly mistakes that can reverse their fortunes. And the wisdom of Great Philosophers can help investors use their fortunes to live the good life, as a great deal of money doesn’t necessarily bring happiness.
In the text that follows the wisdom of money masters and great philosophers is condensed into 20 quotes that are easy to remember and apply in everyday life.
Ten Quotes from Money Masters:
1. Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell—Sir John Templeton
2. In bear markets, things first decline to reasonable prices, then they fall to cheap prices, and then they reach unbelievable giveaways prices. After that, things get really bad, and everybody gets cleaned out—Jim Rogers
3. Earning power is as valuable as assets, therefore try to buy earning power at a discount—George Michailis
4. The usual way I lose money is by buying concept stocks—Philip Carret
5. One must understand the interaction between intelligence and emotion as they in turn respond to the market —George Michailis
6. Investors operate with limited intelligence: they do not know everything. As long as they understand something better than others, they have an edge—George Soros
7. The investor’s chief problem—and even worst enemy—is likely to be himself—Benjamin Graham
8. Seek facts diligently; advice never—Philip Carret
9. On the long side, I’m looking for lower-multiple dull stocks, laggards, with a recovery potential. On the short side, I want to be in the best-known companies of America, the areas of speculative focus. I’m usually short the Who’s Who of the market, stocks in the institutional universe—Michael Steinhardt
10. My approach works not by making valid predictions, but by allowing me to correct false ones. —George Soros
Source: John Train, The New Money Masters (New York: Harper Perennial, 1989).
Ten quotes from Great Philosophers:
1. The unexamined life is not worth living—Plato
2. Remove utterly your desire; for if you desire some one of the things that are not under your control you are bound to be unfortunate. . . .Never say about anything, “I have lost it,” but only “I have given it back. . . .It is not things themselves that disturb men, but their judgments about these things—Epictetus
3. Friendship is a relationship in which two people come to share the same soul—Aristotle
4. By pleasure we mean the absence of pain in the body and of turmoil in the mind—Epicurus
5. No person is free who is not master of himself—Epictetus
6. Nothing in excess—Solon
7. Reproach yourself for the things you do wrong—Pythagoras
8. A prosperous fool is a grievous burden—Aeschylus
9. The man who does evil to others does evil to himself—Hesiod
10. No act of kindness is ever wasted—Aesop