Breaking News
Get 45% Off 0
🌊 NVIDIA ripple effect: Track AI stocks' response to chip giant's earnings
Explore AI Stocks

7 Timeless Investment Mantras for Enduring Success in the Markets

By Investing.com (Francesco Casarella)Stock MarketsNov 28, 2023 20:34
ph.investing.com/analysis/7-timeless-investment-mantras-for-enduring-success-in-the-markets-187055
7 Timeless Investment Mantras for Enduring Success in the Markets
By Investing.com (Francesco Casarella)   |  Nov 28, 2023 20:34
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • Legendary investors' secret sauce for success is their investment philosophy
  • Be it a bull or a bear market, these principles can help investors navigate any market conditions
  • Let's discuss 7 principles that you should never forget while investing in the stock market
  • Missed out on Black Friday? Secure your up to 55% discount on InvestingPro subscriptions with our extended Cyber Monday sale
  • Great investors like Buffett, Lynch, Graham, and Marks aren't distinguished solely by their ability to identify the best deals. They adhere to a unique and significant investment philosophy that guides all their actions in the markets.

    Here are 10 fundamental ideas and approaches that you can adapt from these legendary investors:

    1. "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)

    Consider your banker or advisor: Do they invest in what they propose to you? How did their personal investments perform this year? How do they manage not just your money but their own? Asking such questions may strain relationships.

    2. "Investing is about the stomach, not brains." (Peter Lynch)

    The best strategy means nothing without emotional management. Planning is crucial, but without emotional control, it's worthless.

    3. "Time in the market beats timing the market." (Ken Fisher)

    Buying an index (like the S&P 500) and holding it for 20 years is more profitable than entering and exiting the market. Planning well from the start for a sufficiently long time horizon and sticking to the plan usually outperforms market timing.

    4. "Risk means uncertainty about which outcome will occur and the possibility of loss when unfavorable outcomes happen." (Howard Marks)

    Marks's approach to risk emphasizes that volatility is not risk; it's a natural market characteristic. The real risk lies in uncertainty about outcomes and potential losses in unfavorable situations.

    5. "You're neither right nor wrong because the crowd disagrees with you. You're right because your data and reasoning are correct." (Ben Graham)

    Graham teaches us to be wary of the crowd, think independently, and not be swayed by the often emotional and irrational herd. Following the contrarian logic is a common-sense approach, albeit one followed by few.

    6. "Think about it: it doesn’t make sense to set a goal to make money because money has no intrinsic value. It's wiser to start with what you really want, your authentic goals, and then work backward to ask what you need to achieve them." (Ray Dalio)

    Many investors invest randomly, aiming to "make money," which, upon reflection, makes no sense. Dalio recommends Goal-Based Investing (GBI), where you define goals with specific amounts and deadlines, enabling the right strategy to achieve those precise goals.

    7. "Time is your friend." (John Bogle)

    Choosing a bad market moment or enduring market swings is possible, but patience and a long time horizon bring investors closer to success. Buffett, the best investor in history, holds stocks with a decade-long perspective.

    ***

    You can easily determine whether a company is suitable for your risk profile by conducting a detailed fundamental analysis on InvestingPro according to your own criteria. This way, you will get highly professional help in shaping your portfolio.

    In addition, you can sign up for InvestingPro, one of the most comprehensive platforms in the market for portfolio management and fundamental analysis, much cheaper with the biggest discount of the year (up to 60%), by taking advantage of our extended Cyber Monday deal.

    Disclosure: The author does not own any of the securities mentioned in this report.

7 Timeless Investment Mantras for Enduring Success in the Markets
 

Related Articles

7 Timeless Investment Mantras for Enduring Success in the Markets

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Apple
Continue with Google
or
Sign up with Email