Here's the part 4 of my previous posts regarding the lessons/quotes I've encountered in my various readings on business, stocks, economy, money, war and life. My list is getting too long again hence I'm sharing it with the Filipino Investors out there for them to learn a thing or two. Cheers!
- There's more to see than can ever be seen. More to do than can ever be done. More to find than can ever be found. - The Lion King
- Look out for yourself - Jerome Montino
- Give love away - WB
- Sometimes one pays most for the things one gets for nothing. - Albert Einstein
- A stock does not become attractive simply because it has come to your attention
- These findings reveal an axiomatic truth about investing: investors aren’t rewarded for picking winners; they’re rewarded for uncovering mispricings— divergences between the price of a security and its intrinsic value. It is mispricings that create market-beating opportunities. And the place to look for mispricings is in a disaster, among the unloved, the ignored, the neglected, the shunned, and the feared— the losers
- Though it is ubiquitous, we don’t intuitively recognize the conditions for mean reversion . Time and again investors, including value investors , ignore it and consequently reduce returns. We can show that a portfolio of deeply undervalued stocks will, on average, generate better returns, and suffer fewer down years, than the market. But rather than focus on the experience of the class of deeply undervalued stocks, we are distracted by the headlines. We overreact . We’re focus on the short-term impact of the crisis. We fixate on the fact that any individual stock appears more likely to suffer a permanent loss of capital. The reason is that even those of us who identify as value investors suffer from cognitive biases, and make behavioral errors. They are easy to make because the incorrect decision— rejecting the undervalued stock— feels right, while the correct decision— buying stocks with anemic, declining earnings— feels wrong
- Stockholders seemed to have forgotten that they are owners of a business and not merely owners of a quotation on the stock ticker - Ben Graham
- In a difficult business, no sooner is one problem solved than another surfaces— never is there just one cockroach in the kitchen - Warren Buffet
- Are stocks pieces of paper to be endlessly traded back and forth, or are they proportional interests in underlying businesses? A liquidation settles this debate, distributing to owners of pieces of paper the actual cash proceeds resulting from the sale of corporate assets to the highest bidder. A liquidation thereby acts as a tether to reality for the stock market, forcing either undervalued or overvalued share prices to move into line with actual underlying value - Ben Graham
