happy those who are near,
those who are far will come.
sing before they die; 'twere no bad thing
certain persons die before they sing.
Samuel Coleridge [1772-1834] using the Greek legend that swans sing once
just before their death
investors as a whole, returns decrease as motion increases.
Warren E. Buffett [1930- ]; 2005 Chairman's Letter, Berkshire-Hathaway Co.
you got to do to join [the Alice's Restaurant Anti-Massacre Movement] is
sing it the next time it comes around on the guitar. With feeling. So
we'll wait for it to come around on the guitar here and sing it when it
does. Here it comes.
get anything you want, at Alice's Restaurant. ...'
Folk Singer Arlo Guthrie [1947- ]; excerpt from his anti-war song
every thing there is a season,
time to every purpose under the heaven.
markets are born on pessimism, grow on skepticism,
mature on optimism, and
die on euphoria.
Michael B. Steele [Investment counselor; former investment officer with
Bank One Trust Company, Bernstein-Macauley investment managers and other
can be sad or even tragic when we interpret as failures plans or people
simply because they did not succeed. Extraordinary events, both good and
bad, can happen without extraordinary causes..."
Physicist, author and Caltech professor Leonard Mlodinow (1954- ), in
"Triumph of the Random" (Wall St. Journal, July 3, 2009); author
of "The Drunkard's Walk: How Randomness Rules our Lives
(2008)"; co-author with Stephen Hawking of "A Briefer
History of Time".
|You cannot bring about prosperity by discouraging thrift.
|You cannot strengthen the weak by weakening the strong.
|You cannot help little men by tearing down big men.
|You cannot lift the wage earner by pulling down the wage payer.
|You cannot help the poor by destroying the rich.
|You cannot establish sound security on borrowed money.
|You cannot further the brotherhood of man by inciting class
|You cannot keep out of trouble by spending more than you earn.
|You cannot build character and courage by destroying men's
initiative and independence.
|And you cannot help men permanently by doing for them what they
can and should do for themselves.|
Presbyterian Minister William
J. H. Boetcker (1873–1962), religious leader and public speaker
Graham's observations that investors pay too much for trendy, fashionable
stocks and too little for companies that are out-of-favor, was on the
money... why does this profitability discrepancy persist? Because emotion
favors the premium-priced stocks.
David Dreman (1936- ), investment manager, author of "contrarian
strategy" books, in Forbes (1996)
If women didn't
exist, all the money in the world would have no meaning.
Aristotle Onassis (1906 - 1975), Greek shipping tycoon; husband of Athina
Livanos (1946 - 1960), husband of Jacqueline Kennedy Onassis (1968 - 1975)
The first time
you marry for love, the second for money, and the third for companionship.
Jacqueline Kennedy Onassis (1929 - 1994); wife of John F. Kennedy
(1953-1963), wife of Aristotle Onassis (1968 - 1975), companion of Maurice
Tempelsman (>1975 - 1994)
If you truly want
to get rich and live a life of luxury, then you must master the ability of
generating cash flow from passive income sources. Working will never free
you from having to work.
Perry Jones (1960 - ), self-styled urban philosopher and financial guru,
in his article How to Get Rich III
The public are
just as blind to recognizing the bottom of a depression as they are in
recognizing the top of the boom.
Dean Mathey (1890 - 1972): Dillon Read partner; Princeton Univ. endowment
manager who moved to bonds before the 1929 Crash; Princeton Univ.
benefactor; from his book Fifty Years of Wall Street (1966) which
included the line above from Mathey's 1934 memo "What I Learned from
work remains to be done before we can announce our total failure to make
"Demotivators" poster slogan at www.Despair.com
financial system nearly collapsed," he said, "because smart guys
had started working on Wall Street." ..."But weren't there smart
guys on Wall Street in the first place?" I asked. He looked at me the
way a mathematics teacher might look at a child....
"Wall Street Smarts" by author / humorist Calvin Trillin [1935-
], NY Times (10-13-09 edition)
90% of all cited
statistics may have been made up on the spot.
"Bylo Selhi -- Smart Mutual Fund Investing for Independent Canadian
Investors" at www.Bylo.Org
Of the 5.7
million jobs Americans lost between December 2007 and May 2009, nearly 80%
had been held by men. Mark Perry, an economist at the University of
Michigan, characterizes the recession as a "downturn" for women
but a "catastrophe" for men.
Christina H. Sommers, American Enterprise Institute scholar, in
percent of the people in the world are fools and the rest of us are in
great danger of contagion.
Thornton Wilder [Playwright, 1897-1975]
banker" is one who, when he is ruined, is ruined in a conventional
and orthodox way.
John Maynard Keynes [British economist, 1883-1946]
"One of the
greatest advantages of real estate investing is the power of leveraging
your money and investment. For example, you can tie up a $100,000 asset
with only $1,000 of your own money... . Is this not outstanding?"
from "Introduction to Real Estate as an Investment" on website RealEstateInvestment.Net
In the eyes of
public opinion, the contrarian investor faces a lose-lose proposition.
When contrarian approaches fail to keep pace with the current market
darling, more-fashionable players mock the out-of-step thinker. When
contrarian approaches surpass the alternatives, consensus-oriented players
decry the irresponsibility of the unconventional investor.
David Swensen (1954- ), Yale Univ. Endowment Portfolio Manager, in
On a cold day
it is very easy to borrow a fan.
We used to call a trained investment
"broker", but we're
all broker now.
You win your
best future by making this your best day.
I expect to see
the stock market a good deal higher than it is today within a few
Pronouncement by economist Irving Fisher (1867-1947) in mid-Oct. 1929 as
markets began a -89% rout
If you see a
banker jump out a window, jump after him -- there's sure to be a
profit in it.
Voltaire (aka Francois-Marie Arouet, 1694-1778) Philosopher, Essayist and
Data's name is
properly pronounced "day-tuh" as opposed to "dah-ta"
or "datt-a". When Data corrects Dr. Katherine Pulaski for using
the latter pronunciation, Pulaski asks, "What's the difference?"
Data replies, "One is my name. The other is not."
Android Lt. Commander Data in Star Trek-the Next Generation (1987-1994)
It takes between
20 and 800 years of monitoring performance to statistically prove that a
money manager is skillful, not lucky. ... Even to be only 75% sure he's
skillful, you'd generally have to track a manager's performance for
between 16 and 115 years.
fund manager Ted Aronson, "Confessions of a Fund Pro", Money
magazine (Feb 1999)
investor owned American Water Works, Arkansas Electric, and Tennessee Gas
Pipeline. He e-mailed his broker for advice and got back this terse text
message: "Buy more electric. Hold your water. Let go of the
teach. Listen, you learn.
know the price of everything and the value of nothing.
playwright, poet and novelist Oscar Wilde (1854-1900), in The Picture
of Dorian Gray (1891) and a similar quote in Lady Windermere's Fan
don't know very much. And other people know even less.
Law: If something cannot go on forever, it will stop.
Stein (1916-1999), Chairman, Council of Economic Advisors under Presidents
Nixon and Ford
critics who are so pessimistic about our economy,
I say, "Don't be economic
to the 2004 Republican National Convention by Arnold Schwarzenegger [Body
Builder, Actor, California Governor, 1947- ]
The future will
be better tomorrow.
Danforth "Dan" Quayle [44th U.S. Vice-President, 1947- ]
portion of a good man's life,
nameless, unremembered acts of kindness and of love.
composed on the Banks of the Wye - 7/13/1798 by William Wordsworth [Poet,
#21: If it is
possible to bring about a cure by means of foods or healthful nourishment,
do not administer drugs as these -- especially those that purge -- are
contrary to nature and are her enemies.
of Abu Jacob Ishak ben Soleiman El-Israeli, also known as Isaac Judaeus
no one gets out of it alive.
A crowd is at the
mercy of all external exciting causes, the slave of the impulses which it
Le Bon, French social observer, psychologist, amateur scientist
(1841-1931). Author of The Crowd, which cut a path for the creation
of 20th Century political propaganda and racial superiority theories.]
The largest shape
is without border, the largest noise is without sound, and the grandest
story is without words.
aphorism based in Taoism; a focus of Zhang Jie's book "Without
are extremely good imitators - and so polite they even copy the mistakes.
Scruggs (1924- ), Bluegrass musician, Banjo aficionado from North
games the difference between the amateur and the professional is that the
professional plays the odds, while the amateur, whether he realizes it or
not, is among other things a thrill seeker.
Train (1928- ), Foreword to The Craft of Investing, 1994]
"winner's game", the player who makes the most points wins. In a
"loser's game", the player who makes the fewest mistakes wins.
The best strategy for winning a loser's game is to lose less. In a loser's
game, you play conservative and give your opponent as many opportunities
to blunder as possible.
from Charles Ellis' Financial Analysts Journal article "The
Loser's Game", 1975]
If a consumer
finds he's being sold rotten meat at the grocery store, he has the very
best (consumer) protection agency available: the market.
Friedman (1912-2006), 1973 Playboy interview]
I know of no
way of judging of the future but by the past.
you use to pick stocks or stock mutual funds, your ultimate success or
failure will depend on your ability to ignore the worries of the world
long enough to allow your investments to succeed. It isn't the head but
the stomach that determines the fate of the stock-picker.
Lynch, Beating the Street, (1994)]
Rothschild lived in London in the early 19th century. Getting out of a
hackney cab one time, he gave a very small tip.
The cab driver
said, "You know, Mr. Rothschild, your daughter Julie gave me a much
larger tip than that."
responded, "That's all right for her. She's got a rich father."
Asimov's Treasury of Humor (1971)]
graduate asks, "How does it work?"
student asks, "How much will it cost?"
But a Liberal
Arts major asks, "You want fries with that?"
They say this
is the next great thing, but it just isn't.
Executive Engineer D. Hermance, about the "plug-in" electric
through changing, you're through.
exec Bruce Barton (1886-1967), BBDO founder...attributed by NY Times
columnist William Safire]
investing usually involves boom/bust sequences.
And I concluded early on
that foreign investors acting as a herd always proved to be wrong.
Soros (1930-), financier, philanthropist, political meddler]
are failed writers, but then, so are most writers.
Eliot (1888-1965), poet and critic, son of the well-to-do president of St.
Louis' Hydraulic-Press Brick Co.]
Life is short,
art is long, opportunity fugitive,
dangerous, reasoning difficult ...
first entry in Aphorisms by Greek physician Hippocrates (c.460 BCE
- c. 377 BCE)]
Yol bilen kervana katilmaz.
knows the road does not join the caravan."]
by W.F. Vallicella at //maverickphilosopher.powerblogs.com/aphorisms_and_observations/,
I will tell you a
great secret, my friend. Do not wait for the last judgment, it takes place
Camus, 1913 - 1960, French journalist / philosopher]
The stock market
is always going lower (when it is headed down) and always is going higher
(when it is headed up). Sounds stupid, doesn't it? But that about
expresses the public psychology.
B. Neill, "The Art of Contrary Thinking", first published 1954,
now in a 12th edition]
important message ... is to stay invested in stocks. This is extremely
difficult for many investors, especially during bear markets. As a result,
they jump into and out of even the best funds as market conditions change,
dramatically lowering their returns.
J. Siegel, Professor and author, in Stocks for the Long Run (1994)]
It is not size
that counts in business. Some companies with $500,000 capital are making
more profits than other companies with $5,000,000. Size is a handicap
unless efficiency goes with it.
N. Casson, 1869 - 1951, Canadian/American/English minister, Socialist
activist, writer and publisher. He worked for Pulitzer's New York World
and wrote books about millionaire inventors and businessmen...
particularly in turn-of-the-century steel and telephone industries.]
In the long run,
most people will find themselves better fixed if they will invest not on
the basis of large returns and high interest rates, but on the soundness
of the company, its prospects for the future, and hold what they buy for
permanent investment. Trying to "beat the market" is a losing
game for the vast majority.
Peter Giannini, 1870-1949, immigrant founder of the working man's
"Bank of Italy" in San Francisco's North Beach neighborhood. By
1919, he expanded this business across California as BancItaly. He bought
insurer Transamerica in 1928 and consolidated his nationwide enterprise
under the name of a venerable New York City bank he acquired...Bank of
America. Unlike most executives, now or then, Giannini refused high
salaries, gave away much of what he was paid, and died with $500,000 to
his good name.]
Bragging may not
bring happiness, but no man who's caught a large fish walks home through
commoditization means competing on price alone, which isn't really
competing at all. It's just an endless game of "who can make and sell
it cheaper." Commodity products have little intelligence built into
them, and your customers have little loyalty. If the next guy can make it
more cheaply, they're gone. And so are you.
2004 weblog by marketing firm FireWhite (founder Marcia Kadanoff-
'dictatorship of the proletariat', even if democratic in form, if it
undertook centrally to direct the economic system, would probably destroy
personal freedom as completely as any autocracy has ever done.
Hayek, economist, in The Road to Serfdom,1944]
Q: "I have a
decent size credit line on my primary residence. I want to pick a property
to purchase... Any thoughts?"
A: "I have
learned....if it can happen, it will happen. Here goes my opinion. I say
use OPM (Other Peoples Money)."
to questioner "Karnalvor" on website www.RichDad.com, August 2004]
It does not
matter whether the cat is black or white, only that it catches mice.
Xiaoping, 1904-98, Chinese leader]
horse with a great record may not be able to run anymore.
Buffet, 1930-, Berkshire Hathaway CEO, at 1993 Annual Meeting]
The years teach
much which days never know.
W. Emerson, 1803-1882, American essayist]
Too many hours
with soft-ware you know,
makes you soft
often goes with fewer words.
496 -406 BCE, Athenian playwright]
For big money,
stock picking is irrelevant.
allocation is the whole game.
M. Biggs, Morgan Stanley market strategist, 1987]
My ventures are
not in one bottom trusted,
Nor to one
place; nor is my whole estate
fortune of this present year
Therefore, my merchandise
makes me not sad.
Shakespeare, 1564-1616, spoken by Antonio in The Merchant of
Read every day
something no one else is reading.
Think every day
something no one else is thinking.
Do every day
something no one else would be silly enough to do.
It is bad for
the mind to be always a part of unanimity.
Morley, 1870-1957, author]
foolishly ignore beauty, you'll soon find yourself without it. Your life
will be impoverished. But if you wisely invest in beauty, it will remain
with you all the days of your life.
Lloyd Wright, 1869-1959,architect]
A fact is a fact
and is always the same. An opinion may vary with what you had for dinner.
inventor is simply a fellow who doesn't take his education too
F. Kettering, 1876-1955, engineer and inventor with 300 patents...
the electric cash register, electric auto ignition, spark plugs, freon
refrigerant, auto quick-dry paint, safety glass, and the automatic
transmission. Kettering's Dayton Engineering Laboratories Company created
the first "Delco" electric auto generator and was bought by
General Motors in 1920. Kettering then served as head of GM Research
Corporation for 27 years. He endowed the Kettering Foundation to study
politics in democracy, and with long-time GM Chairman Alfred Sloan, he
created the Sloan-Kettering Institute for Cancer Research in New York City
always had a sordid history, at all the exchanges. It looks like a
gambling casino, and therefore it is used as a scapegoat. When anything
goes wrong in the world, it is easy to pick on futures and say it is their
fault. We have proved time and time again that it isn't our fault.
Melamed, 1932- , former Chairman, Chicago Mercantile Exchange]
successful businessperson is the one who holds onto the old just as long as it is
good, and grabs the new just as soon as it is better.*
P. Vanderpoel (former Chicago Sun-Times Financial Columnist)]
adjusted for political correctness
behind us and what lies before us are tiny matters compared to
what lies within us.
to BOTH... author Ralph W. Emerson (1803-82) and
Court Justice Oliver W. Holmes(1841-1935)]
someone asks, "How are you?"... respond with a "Just
wonderful!"... Say you feel wonderful at every possible opportunity
and you will begin to feel wonderful. Become known as a person who always
J. Schwartz, The Magic of Thinking Big, 1959]
Outside of a dog, a
book is a man's best friend. Inside a dog, it's too dark to read.
Marx, comedian, 1890-1977]
If you torture the
data long enough, it will confess to anything.
Huff in How To Lie With Statistics, 1954]
My definition of a
guru is someone who is lucky enough to be quoted in the right publication at
the right time saying the right thing.
Greenberg, columnist for TheStreet.com, March 1998]
It is often easier to
tell what will happen to the price of a stock than how much time will elapse
before it happens.
A. Fisher, 1909-, in Common Stocks and Uncommon Profits and Other
The thing that is
most interesting to me is that every one of the managers is able to give me a
chart that shows me that he was in the first quartile or the first decile.
English, 1933-2001, investment officer for the Ford Foundation and AT&T]
Do we know where our school motto "The Best is Yet to Be!" comes from?
These words are
taken from Robert Browning's (1812-1889) poem titled "Rabbi Ben Ezra", first published in
1864, which begins...
Grow old along with me!
The best is yet to be,
The last of life, for which the first was made:
Our times are in His hand
Who saith "A whole I planned,
Youth shows but half; trust God: see all, nor be afraid!''
Ben Ezra was a Jewish scholar of twelfth century Spain. In his poem, Browning
uses the figure of Ben Ezra, a theist familiar with Scripture, to oppose the Epicurean and
Sceptic view that men should live for the passing moment.
from "Class of 1979" website, Anglo-Chinese School of Singapore]
Today in America too
many large corporations are the property no longer of shareholders but of
management and investment bankers. Together they're having a ball [having]
forgotten who their owners are. We don't think there needs to be a great
revolution, but we think that maybe shareholders shouldn't take a totally passive
role. We have to be more activist.
Johnson III (1930-), Chairman, Fidelity Investments]
I'd like to
live like a poor man with lots of money.
Picasso, artist, 1881-1973]
money, the amount of interest you want should depend on whether you want to
eat well or sleep well.
can complain because rosebushes have thorns, or rejoice because thornbushes
have roses; it's all how you look at it.
I was a technician at Putnam, and the fund
managers were giving me an unusually hard time one day. I told them
"Yes, the boss just called me into his office, and said I had been
making a lot of mistakes recently. He added that if I kept it up they'd have
to give me a fund to run."
it's time to buy, you won't want to.
by Walter Deemer, Technical Analyst & Market Strategist]
the recent market decline, one investor was overheard asking another,
"How are you bearing up under the strain? Do you have trouble
sleeping?" His fellow investor replied, "I sleep like a
baby." The first seemed perplexed. "Like a baby you say?"
The second nodded and explained, "I wake up every three hours and
What's Your Investment Philosophy?
A. There's a cartoon from the New
Yorker that shows two lions on a hilltop, and one says "I'm not picky
-- whatever's wounded." Over time, I think the typical stock that's
wounded -- that's out of favor in the market -- will outperform.
Aronson, "Value" Money Manager, 1999
wise to remember that too much success in the stock market is in itself an
Gerald M. Loeb, Stockbroker & Financial Writer
people buy stock for their old age. If you buy in a bear market, or sell
short in a bull market, you'd be surprised how fast you can get there!
1001 Sidesplitting One-Liners by James Dines
will judge between the nations and will decide for many peoples. They will
hammer their swords into plowshares and their spears into pruning hooks.
Nation shall not lift up sword Against nation; neither shall they learn
war any more.
of Isaiah 2:4
Each of them will sit under
his vine and under his fig tree, with no one to make them afraid.
of Micah 4:4
in equities is not a zero-sum game, but a positive-sum game. Or at least
it has been during most of past history. With the profitability and growth
of corporate America, stock prices have risen steadily over the years.
Yet, each day, investment professionals and amateurs alike are buying and
selling stocks with one another, and when the seller wins, the buyer loses
and vice versa. So, in the stock market, the returns earned by all
investors are inevitably average and beating the market is a zero-sum
C. Bogle, Former Chairman of Vanguard Group, 1999
can remain irrational longer than you can remain solvent.
Maynard Keynes, British Economist, 1883-1946
Money can't buy
happiness... but somehow it's more comfortable to cry in a Porsche than in
of the strangest things about life is that the poor, who need money the
most, are the very ones that never have it.
Peter Dunne (1867-1936) Journalist/Humorist for the Chicago Evening
Post and Chicago Journal. Known as creator of fictional Irish
saloonkeeper "Martin Dooley"
you can count your money, you don't have a billion dollars.
Paul Getty (1892-1976) Oil Entrepreneur; "Richest man in World"
Agent to Taypayer being audited: "The trick is to stop thinking of it
as YOUR money."
by Serrano, Wall St. Journal, 1985
Fundamental Law of
Administrative Workings (F.L.A.W.):
Things are what they are
reported to be, or... If it isn't official, it hasn't happened.
John Gall, NY Times Magazine, 1976
better to have loafed and lost, then never to have loafed at all.
Thurber (1894-1961) American Writer/Humorist/Cartoonist
the benefit of hindsight, we now know that the majority of investors who
piled into tech funds did so too late in the game to reap big returns
before Nasdaq took a nosedive in April . I asked my colleagues to
look at the wealth effect of the frenzy and fall. We looked at the cash
flows into the technology and science funds and calculated (with a degree
of estimation involved) the dollar-weighted performance of that sector
since January 1999. We found what the real story is and what anyone in the
business knew -- while time-weighted returns for investors were
spectacular (108%), the dollar-weighted returns, what people actually
earned, were modest to a fault at 8%. Those are statistics that beg to be
by John J. Brennan, Chairman/CEO of Vanguard Group, 10/23/2000
estates may venture more, Little boats must keep near the shore.
Franklin (1706-1790) in Poor Richard's Almanac
may be the husk of many things, but not the kernel.
It buys you food, but not appetite;
medicine, but not health; acquaintances, but not friends; servants, but
not loyalty; days of joy, but not peace or happiness.
Ibsen (1828-1906), Playwright
As a general rule,
nobody has money who ought to have it.
Disraeli (1804-1881) British political leader
a nice little company that's been making shoelaces for 40 years and sells
at a respectable six-times-earnings ratio. Change the name from Shoelace,
Inc. to Electronics and Silicon Furth-Burners. In today's market the words
electronic and silicon are worth 15 times earnings. However, the real play
comes from the word furth-burners, which no one understands. This entitles
you to double your entire score. Thus, we have six times earnings for the shoelace
business and 15 times earnings for electronics and silicon, or a total of
21 times earnings. Multiply this for two for furth-burners, and we now
have a score of 42 times earnings for the new company.
Dreyfus (Mutual Fund co-founder) discussing the 1950s, according to Burton
borrow money from a pessimist; He doesn't expect to be paid back.
A Dutchman was
explaining the red, white and blue Netherlands flag to an American...
"Our flag is
symbolic of our taxes," he said. "We get red talking about them,
white when we receive tax bills, and blue after we pay them."
The American nodded.
"It's the same in the USA, only we see stars too!"
In a country well
governed poverty is something to be ashamed of.
In a country badly
governed wealth is something to be ashamed of.
Retirement at sixty-five
When I was sixty-five I
still had pimples.
Burns (1896-1996), Comedian
of the commonest things to do with savings is to lend them to some
Government. In view of the fact that the bulk of the public expenditure
for most civilized Governments consists in payment for past wars or
preparation for future wars, the man who lends his money to a Government
is in the same position as the bad men in Shakespeare who hire murderers.
The net result of the man's economical habits is to increase the armed
forces of the State to which he lends his savings. Obviously it would be
better if he spent the money, even if he spent it in drink or gambling.
Russell, In Praise of Idleness, 1932
are bought on expectations, not facts.
Gerald M. Loeb, Stockbroker & Financial Writer