Two investment quotes and two questions to consider on your journey to wealth creation.
Our weekly post providing investment quotes, insights and advice from the best thinkers in philosophy, finance and business.
“The things we try should not be confined to those things whose future success we can most easily explain in retrospect. Whether something makes sense in theory matters less than whether it works in practice.”
The stock market doesn’t make sense. Anyone who’s been investing for even a short amount of time is quickly faced with this reality. Often, investors have no idea what to “do” about the irrationality of the markets. The great news is that the markets don’t have to make sense in order to be profitable.
Much profit can be made from the irrationality of market prices – this is how discounts are born. Eventually, the market gets it right and closes gaps in price. The key is investing in a way that allows you to survive until it happens.
As Howard Marks has remarked, underpriced doesn’t mean going up immediately and overpriced doesn’t mean doing down tomorrow.
“A flower is simply a weed with an advertising budget.”
Perspective is more powerful than we often take a moment to truly understand. As our perspectives grow and change, the world takes on different shape and form. Good and bad morph and change.
Value and overpriced mean different things as we develop new perspectives on how to assess companies. When you invest in cheap stocks that are likely to experience price correction for the realization of value, a lot of expensive, well-known companies look like weeds.
Developing this perspective on glamorous companies is almost a requirement in order to pull the trigger on lesser known companies with bad press and/or scarce analyst coverage. It’s not for everybody but for those who can change perspective, the rewards are bountiful.
Two Questions to Consider:
- In what ways are my perspective limiting my potential towards things that I want to pursue?
- How can I seek out new perspectives that are in alignment with the outcomes that I want?
We hope that you have enjoyed the investing quotes and questions for the week ahead. As always, keep it simple and remember to do your due diligence.