stock exchange— laws, rules, secrets. The best quotations and sayings with comments
I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I'm paying $32 billion today for the Coca-Cola Company because…” If you can't answer that question, you shouldn't buy it. If you can answer that question, and you do it a few times, you'll make a lot of money.
The stock market and economy are two different things.
A man is robbed on the Stock Exchange, just as he is killed in a war, by people whom he never sees.
The point is, ladies and gentleman,
that GREED, for lack of a better word, is GOOD.
Greed is right. Greed works.
There are more mediocre people making money on Wall Street than any other place on earth.
In the stock market, as with horse racing, money makes the mare go. Monetary conditions exert an enormous influence on stock prices.
Too many people are apt to redeem their profits too quickly. In a huge bull market they wind up with piddling profits, only to watch their former holdings soar. That usually prompts them into making mistakes later when, believing that the market owes them some money, they buy at the wrong time at much higher levels.
Speculation is the struggle of well-equipped intelligence against the rough power of chance.
The singular feature of the great crash of 1929 was that the worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited out all of October and all of November, who saw the volume of trading return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks, would see their value drop to a third or a fourth of the purchase price in the next twenty-four months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.
The stock market is but a mirror which . . . somewhat belated, provides an image of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market, never the reverse. In 1929 the economy was headed for trouble. Eventually that trouble was violently reflected in Wall Street.
Share prices follow the theorem: hope divided by fear minus greed.
There are more mediocre people making money on Wall Street than any other place on earth.
Remember the only two investment principles that matter - what is, isn't. What isn't, is. Master this knowledge and no market can defeat you. Listen to the cry of the reptile deep within you.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.