A Very Smart Investor Once Said…
“Never buy anything from someone who is out of breath.” — Burton G. Malkiel: “A Random Walk Down Wall Street”
Keep It Simple Stupid!
I have learned over many years of losing (and winning) a lot of money in the stock market that there is no “secret” to success.
If there ever was such a thing (which I just told your that there isn’t) then I hate to be the one to break it to you, but it probably went something like this…
The Secret: Instant Success In The Stock Market
This might seem too simple — but it’s the bitter truth. I had to come to terms with it, so will you.
If you ever want to actually make consistent money in the rugged, corrupt, irrational American Stock Market.
- Work hard
- Keep it simple
- NEVER trade with your emotions
- Finally — ALWAYS run in the opposite direction of where the herd is going
Many will read this and think I’m just spewing out BS, and then they’ll go watch 50 YouTube videos about how to perfectly time the market using Fib Retracements and the MACD.
If you found success by perfectly timing the market — if you located that elusive treasure — by all means, click away from this article and continue thriving. Immediately!
Now, for the rest of us muggles, let’s hear some more wisdom from proven winners in the realm of investment.
How about we keep this light, easy, and to the point? I don’t know about you, but I’m not in the mood for a t
Let’s marinate our brains in the genius of these magical words spoken by a few of the Mavericks — (the GOATS) — whom history deemed to be among the most capable that Wall Street has ever produced.
There is a plethora of invaluable information out there for the taking. It’s 100% free, yet most never see it — or they simply pass it up, thinking it irrelevant.
More Quotes From The GOATS
Wisdom of Malkiel
First, before the listicle of great quotes by one of the greatest minds Wall Street ever has the blessing to house, I want to share one of my favorites.
It’s actually a passage from his book “A Random Walk Down Wall Street”
“A couple, both age seventy-eight, went to a sex therapist’s office. The doctor asked, “What can I do for you?” The man said, “Will you watch us have sexual intercourse?” The doctor looked puzzled, but agreed. When the couple finished, the doctor said, “There’s nothing wrong with the way you have intercourse,” and charged them $50. The couple asked for another appointment and returned once a week for several weeks. They would have intercourse, pay the doctor, then leave. Finally, the doctor asked, “Just exactly what are you trying to find out?” The old man said, “We’re not trying to find out anything. She’s married and we can’t go to her house. I’m married and we can’t go to my house. The Holiday Inn charges $93 and the Hilton Inn charges $108. We do it here for $50, and I get $43 back from Medicare.” — Straight fire!
A few more before we finish…
- It’s not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges. It is an obvious lesson, but one frequently ignored.
- Tip of the Week If you bought $1,000 worth of Nortel stock one year ago, it would now be worth $49. If you bought $1,000 worth of Budweiser (the beer, not the stock) one year ago, drank all the beer, and traded in the cans for the nickel deposit, you would have $79. My advice to you…start drinking heavily.
- There are four factors that create irrational market behavior: overconfidence, biased judgments, herd mentality, and loss aversion.
I know we only got to one of the GOATS, I apologize for that. But, Malkiel has a lot to say! In the next installment of what might become a new mini-series…?
Let me know if you actually enjoyed this — Or if I need to stop.
If you liked it, found it helpful, or at least enjoyable reading, then also let me know. Next time we’ll cover Warren, or perhaps Mrs. Woods.
Who knows?
Maybe we’ll go deeper in history next time and revisit some of the wisdom left behind by those savage investors responsible for the “Tulip Bulb Craze” — or the 18th Century Japanese Rice Traders who are credited with creating the modern day Candle Stick Charts that we all rely on…
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