Quotes, reminders, knowledge, ideas, and wisdom that shaped my thinking when it comes to personal finance and investing. I visit them regularly. I highly recommend anyone visiting this page to follow the below Twitter accounts. I’m sure you will gain a lot of insights and start reflecting on your own investment behaviour.
The Psychology of Money
— Morgan Housel (@morganhousel) June 3, 2018
From an industry that talks too much about what to do, and not enough about what happens in your head when you try to do it.https://t.co/1JPpZchhs9
Turns out investment success is not about skill, it's about behavior.
— Carl Richards (@behaviorgap) March 28, 2019
Five important investing lessons:
— The Motley Fool (@themotleyfool) May 14, 2019
1. Compounding takes time and makes you rich.
2. Markets are volatile, month by month.
3. Simple is usually better than clever.
4. More savings can multiply your returns.
5. Never stop asking questions.
"Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things." -Munger
— Morgan Housel (@morganhousel) June 29, 2018
If you think compounding works wonders with interest, just wait until you see what it does with patience.
— Douglas A. Boneparth (@dougboneparth) July 2, 2019
"The best investors in the world have more of an edge in psychology than in finance." – @morganhousel
— Ian Cassel (@iancassel) December 22, 2018
Good to read investment books.
— D.Muthukrishnan (@dmuthuk) May 11, 2019
Better to read about companies.
Best to read about behaviour and psychology.
For all long term investors, activity is the enemy and inactivity is the friend.
— D.Muthukrishnan (@dmuthuk) May 29, 2019
It's not your investments that are the problem…it's you.
— Carl Richards (@behaviorgap) July 10, 2019
Your investments are doing exactly what they were designed to do.
Turns out, so are you.
You were designed to get away from things that cause pain, and get more of things that give you security or pleasure.
lifetime investment success is not about skill, it's about behavior.
— Carl Richards (@behaviorgap) July 2, 2019
No one is smarter than the collective intelligence of millions of other investors. Some, however, are a little more patient and less emotional. That's where the potential for "edge" is found.
— The Motley Fool (@themotleyfool) July 5, 2019
Investors:
— Jim O'Shaughnessy (@jposhaughnessy) September 19, 2018
Your "morning routine" doesn't matter;
Finding "clever hacks" won't help you;
Reading lists of the "10 things all successful people" do won't help you.
Watching "motivational videos" won't help you.
What will?
Controlling your emotions, being patient and persistent.
When people say they want to be a millionaire what they often mean is "I want to spend $1 million" which is literally the opposite of a millionaire.
— The Motley Fool (@themotleyfool) July 16, 2018
My favorite line from Ben Graham's greatest speech:https://t.co/hvSruVQaPX pic.twitter.com/WXEjs3SNBX
— Jason Zweig (@jasonzweigwsj) August 17, 2018
a reminder, from my archives:https://t.co/LnkNZgHZBK pic.twitter.com/syPuyEd13c
— Jason Zweig (@jasonzweigwsj) June 10, 2019
A lot of personal health comes down to "Eat right and exercise." A lot of financial health comes down to "Spend less and invest." Very powerful, very simple.
— The Motley Fool (@themotleyfool) July 2, 2019
People say you can’t “save” your way to wealth.
— Mark Allan Bovair (@markallanbovair) July 6, 2019
But you can save yourself to $10,000.
Then you can invest that $10,000 into something:
Your own business
Real estate
Someone else’s business
Stocks
All while saving another $10,000.
Repeat many times.
Get wealth.
Anticipation is the enemy of patience.
— Wealth Theory (@Wealth_Theory) June 21, 2019
Nothing happens overnight and a market must breathe.
Inhale, exhale. Let the market work.
Lots of similarities between the psychology of money and food/fitness
— Ramit Sethi (@ramit) October 16, 2018
For food/fitness, follow @DrNadolsky (especially on Instagram) pic.twitter.com/DMB6atjPsr
"Save more money" is some of the best financial advice you can give, but it's not intellectually stimulating enough for smart people to take seriously.
— The Motley Fool (@themotleyfool) June 12, 2019
“Being rich is having money; being wealthy is having time.” -Margaret Bonnano, science fiction author
— The Motley Fool (@themotleyfool) August 26, 2018
Returns do not come for free. They demand a price, and they accept payment in uncertainty, confusion, short-term loss, surprise, nonsense, stretches of boredom, regret, anxiety, and fear.
— Fundu Investor (@FunduInvestor) August 9, 2018
– @morganhousel
"Fortunes are built during the down market and collected in the up market." Jason Calacanis, LAUNCH Ticker founder
— The Motley Fool (@themotleyfool) August 1, 2018
It's strange that you go to the doctor once a year but check your investments once a day.
— The Motley Fool (@themotleyfool) May 25, 2019
The longer you hold stocks, the less risky they become.
— The Motley Fool (@themotleyfool) August 19, 2018
– @WarrenBuffett
The stock market fell because if it only went up there would be no risk and if there’s no risk there’s no return, and if there’s no return people will sell, so the stock market fell. The end.
— Morgan Housel (@morganhousel) October 25, 2018
If investing were easy, everyone would be successful. And if everyone were successful, there would be no more opportunity to exploit. So it's never going to be easy, and a lot of people will always be unsuccessful.
— Morgan Housel (@morganhousel) August 28, 2018
For inquiring minds:
— Paul Krugman (@paulkrugman) October 11, 2018
Why did the market suddenly plunge? I have no idea.
Will it keep going down, or bounce back? I have no idea.
Is this going to translate into problems for the real economy? I have no idea.
But what you need to know is: nobody else has any idea, either.
Risk is a totally arbitrary concept UNTIL you experience it.
— Carl Richards (@behaviorgap) June 8, 2019
Why do stocks fall by a lot sometimes?
— Ben Carlson (@awealthofcs) October 11, 2018
Because sometimes they rose too much
And why do stocks rise by a lot sometimes?
Because sometimes they fell too much
Repeat as necessary
"Timing the market is a fool's game, whereas time in the market is your greatest natural advantage." — Nick Murray
— The Motley Fool (@themotleyfool) May 28, 2019
Remember this the next time you're tempted to cash out.
— The Motley Fool (@themotleyfool) October 13, 2018
As an investor, when your fight-or-flight fear instinct kicks in the hardest, that’s the probably moment you ought to go take a nap. Then come back later and buy some bargains. https://t.co/S6zvr2NeB0
— The Motley Fool (@themotleyfool) July 2, 2018
"It's waiting that helps you as an investor, and a lot of people just can't stand to wait." -Charles Munger
— The Motley Fool (@themotleyfool) July 16, 2018
The key to long term performance is the ability to ignore short term performance.
— D.Muthukrishnan (@dmuthuk) September 8, 2018
"Don't do anything" is often the best advice for most investors, but it's not exciting enough for many people to take seriously.
— The Motley Fool (@themotleyfool) May 24, 2019
Don’t worry about being a young investor.
— Douglas A. Boneparth (@dougboneparth) August 19, 2018
Focus on being a young saver.
"Most of the things we buy are wants. And we call them needs, but they're wants." — @DaveRamsey
— The Motley Fool (@themotleyfool) July 14, 2018
Unless you buy a stock at the exact bottom (which is next to impossible), you will be down at some point after you make every investment. Your success entirely depends on how dispassionate you are towards short term stock price fluctuations. Behavior matters.
— Value Investor Journal ® (@VJ_Rabindranath) November 17, 2018
— Joel Greenblatt
Before the correction: we’re waiting for a healthy correction to deploy capital intelligently
— Ben Carlson (@awealthofcs) October 11, 2018
During the correction: the market is NOT healthy at the moment. waiting to deploy at much lower levels. markets are BROKEN
We have investing span of two or three decades but behave like we have two or three years.
— D.Muthukrishnan (@dmuthuk) January 31, 2019
Interest rates are rising, which is bad for stocks.
— Morgan Housel (@morganhousel) October 17, 2018
But rates are rising because the economy is growing, which is good for stocks.
High growth could cause inflation, which is bad for stocks.
But inflation could boost earnings, which is good for stocks.
Repeat until crazy.
Invest right sleep tight. #investing pic.twitter.com/5qbeAdbVRQ
— Vishal Khandelwal (@safalniveshak) February 25, 2019
This, from the excellent “Atomic Habits“ by James Clear, explains why investing beats trading. It’s a lonely last mile for those of us who invest Foolishly. Lonely… and lucrative. pic.twitter.com/O1liOmwfHH
— David Gardner (@DavidGFool) February 24, 2019
Instant gratification may be satisfying in the moment, but delayed gratification is much better in the long-term.
— The Motley Fool (@themotleyfool) December 20, 2018
Wealth is never free. Sometimes, the cost is money. But often it's our peace of mind, or the time we could've spent with our loved ones. And sometimes, it costs our life. Always know what you are paying in the pursuit of wealth. It is, after all, never free.
— Vishal Khandelwal (@safalniveshak) April 1, 2019
The difference between expectations and forecasting:
— The Motley Fool (@themotleyfool) May 19, 2019
EXPECTATIONS: We'll have 1-2 recessions per decade.
FORECASTING: There will be a recession this year.
Ignore forecasting. Set smart long-term expectations, instead.
"If investing were all about math, mathematicians would be rich. If it were all about history, historians would be rich. If it were all about economics, economists would be rich. If it were all about psychology, psychologists would be rich. " @morganhousel
— Georgie Loxton, CFA (@GeorgieLoxton) December 2, 2018
If you are going to invest in the stock market, repeat The Normal after @preston_mcswain https://t.co/WxqskFrfci pic.twitter.com/KtzwlssRrG
— Philippe Maupas (@philmop) October 11, 2018
If you're scared about the markets, call your financial advisor.
— Carl Richards (@behaviorgap) March 29, 2019
If your financial advisors makes you feel dumb for being scared…find a new one.
Real financial advisors understand that being scared is human, they just won't let you act on it.
"To bankrupt a fool, give him information." – @nntaleb
— Nassim Nicholas Taleb Bot (@nntalebbot) January 31, 2019
How many have become rich by watching market channels? I rest my case.
— D.Muthukrishnan (@dmuthuk) January 22, 2019
"People who read the tabloids deserve to be lied to."
— Morgan Housel (@morganhousel) October 17, 2018
– jerry seinfeld, before twitter/cable news.
Want to know the secret to investing?
— The Motley Fool (@themotleyfool) March 27, 2019
Time.
Give your money time to ride through the stock market's ups and downs. Then reap the rewards of long-term investing.
This should be taught to every student at every school @naval
— Samir Madi 🏃♂️ (@SamirMadi01) March 11, 2019
Freedom is a lifestyle of less possession and more time. pic.twitter.com/RV68CLkKpX
If we were as impatient about gardening as we are investing:
— The Motley Fool (@themotleyfool) May 8, 2019
We'd plant some seeds in the backyard. Check back 4 hours later. Nothing. We'd dig them up and replant them. Four hours. Still nothing. A week later, dismayed — with no oak trees in the yard — we'd call it a scam.
Institutional investors cannot take long term calls as they are answerable for short term performance. We, the amateur investors, have a huge edge. Nobody is going to question us for underperformance. Still we rarely use our only edge.
— D.Muthukrishnan (@dmuthuk) February 22, 2019
Consumerism is basically humans collecting things when we feel horny & jealous.
— ChuChuTrain (@TheChuChu_) May 12, 2019
“There's nothing in this world, which will so violently distort a man's judgment more than the sight of his neighbor getting rich.”
— Wealth Theory (@Wealth_Theory) March 26, 2019
– J.P. Morgan, 1907
The simplest way to improve your investment returns is to double your average holding period.
— The Motley Fool (@themotleyfool) May 4, 2019
If you need the money in the next year, don’t invest it. You don't want the down payment for your vacation home to evaporate in a stock market crash. #FoolishAdvice
— The Motley Fool (@themotleyfool) March 25, 2019
Money makes us rich, behavior makes us wealthy.
— Akhilesh Pathak (@akhileshnpathak) January 23, 2019
Process creates habit, habits compound results.
Saving creates wealth, Investing grows it.@dmuthuk@anshul81
The strongest predictions usually come from investors with the least experience.
— Wealth Theory (@Wealth_Theory) May 3, 2019
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."
— Jim O'Shaughnessy (@jposhaughnessy) March 17, 2019
~Lao Tzu
The more precise the prediction the less reliable it is.
— D.Muthukrishnan (@dmuthuk) March 13, 2019
“We have two classes of forecasters: those who don’t know – and those who don’t know they don’t know.”
— Keith McCullough (@KeithMcCullough) February 20, 2019
-John Kenneth Galbraith
When a naive investor who saw no risk suddenly sees risk, he is most vulnerable to panic selling.
— Wealth Theory (@Wealth_Theory) May 3, 2019
When a market which saw no risk suddenly sees risk, it is most vulnerable to crash.
Zero risk priced in = maximum risk.
I know that managing my money is the easy part.
— Vishal Khandelwal (@safalniveshak) May 2, 2019
It's managing the "I" that is difficult – the "I" that thinks it knows, and that it is easy.
You don’t look at the value of your house daily, monthly or even yearly. If you've same outlook towards equity, you would create huge wealth.
— D.Muthukrishnan (@dmuthuk) April 25, 2019
What would happen if there were no analyst buy/hold/sell recommendations?
— Ramp Capital (@RampCapitalLLC) April 23, 2019
The best thing money buys is control over your time. It gives you options and frees you from relying on someone else's priorities.
— The Motley Fool (@themotleyfool) April 22, 2019
The earlier children are taught to save money the better.
— Wealth Theory (@Wealth_Theory) April 13, 2019
The first critical wealth management skill we should learn is preservation.
"Psychology is probably the most important factor in the market and one that is least understood."
— Investment Books India 📚 (@Invest_books_IN) April 13, 2019
– David Dream
Learning to trade is by definition self-education.
— Wealth Theory (@Wealth_Theory) April 7, 2019
If there was a school that churned out successful traders, you wouldn’t be able to afford it anyway.
This isn't rocket science:
— The Motley Fool (@themotleyfool) April 4, 2019
Spend less than you earn.
Save the difference.
Diversify.
Be patient.
That's 90% of finance.
If your needs are simple and your joy is non-material, it’s easier to be wealthy.
— Wealth Theory (@Wealth_Theory) May 5, 2019
Money is not the goal. Freedom is the goal.
— Steve Burns (@SJosephBurns) April 28, 2019
Harry Markowitz won the Nobel Prize for his mathematically precise investment allocation theories. When asked how he invests personally: pic.twitter.com/lL165LNyeu
— Morgan Housel (@morganhousel) September 3, 2018
A 60/40 portfolio is one that underperforms our desires by 40% on the way up, and 60% on the way down.
— Dan Egan (@daniel_egan) October 19, 2018
2/2 The most important part of the cake is the cake itself – the stock and bond mix. This sets risk and return. The icing on top adds flavor and gives the cake personality. The candles are the main attraction. People ooh and aah over them, then they're blown out and forgotten.
— Rick Ferri, CFA (@Rick_Ferri) April 25, 2019
There will be days when you look at your portfolio in horror.
— The Motley Fool (@themotleyfool) July 1, 2018
But there won't be decades.
I’ve studied rebalancing on a number of occasions. Annual works fine, every 2 yrs works fine, so does every 5 yrs. You could also use %. 5% off target works fine, so does 10% off. Bottom line, don’t agonize over the perfect rebalancing strategy. No one knows what optimum will be.
— Rick Ferri, CFA (@Rick_Ferri) September 2, 2018
Focus on managing risk and accept the returns that go along with your tolerance for it. #FoolishAdvice
— The Motley Fool (@themotleyfool) April 2, 2019
Many people woke up today wishing they made better financial choices 20 years ago.
— Wealth Theory (@Wealth_Theory) March 30, 2019
And 20 years from now people will be waking up wishing they made better financial choices TODAY.
“The best time to plant a tree was 20 years ago. The second best time is now.”
– Chinese Proverb
"Earn more and retire early" is a stupid dream.
— Kunal (@KunalBSarkar) March 28, 2019
Ideally, you want to be working on something till the last breath of your life.
For that, your work should be something that you love doing.
There are many ways to become poor. Trying to get rich fast would top the list.
— D.Muthukrishnan (@dmuthuk) February 16, 2019
A good reminder how NOT 'newsworthy' or click-baity the real financial media would be. <lol>
— MichaelKitces (@MichaelKitces) January 12, 2019
"Investing Answers You Won’t See in the Financial Media" https://t.co/0ktRx7VsQR pic.twitter.com/vUV67Pwx7W
15 year old son bought his first stock recently. Down ~20% since then.
— Brian Portnoy (@brianportnoy) October 24, 2018
Couldn't have asked for a better start to his education.
