Market Quotes To Live By

By Jon L. Ten Haagen, CFP ®
asktheexpert@longislandergroup.com

Wow. We made it past tax filing time. I hope you got all your papers filed or got your extension to get a little more time to file. If so, you now have until October of this year to file.

So, what should we talk about now?

How about reviews? Such as reviews of your insurance policies or a review of your beneficiary designations if there has been a life change event, such as a birth or death. Review your retirement savings plan(s) to see if they are still balanced as they should be. Review your debts including credit cards. The list goes on.

Start with one issue and finish it, then on to the next one until they are all behind you. Believe me you will feel like a new person when you don’t have these clouds over your head.

Now, here are a number of quotes from some of the brightest people who have made their living within the stock markets. There are some common characteristics among people who have long term success. They have a purpose in mind when they start and they look very closely at the quality of the companies, how well they are managed and what is the outlook for future earnings based on the products and services they are generating.    

There are many reasons people invest – to generate current income, generate growth over time, creating an income in the future to live upon. Consider your timeframe before you invest. Consider that if you are investing in your 20s and 30s then you are most likely looking at converting these growth investments to cash flow when you are in your 60s and beyond. That is a time span of 30-40 years and more.

Investing is like planting an acorn to grow an oak tree. You have to give it lots of time to mature and become the big tree you want. It is the same with you investments: Give them time to grow. Yes, occasionally you have to make adjustments to your portfolios to react to the changing markets and times.

As Sir John Templeton, one of the pioneers of global investing, said, “Diversify your investments.” Basically, he is saying don’t put all your eggs in one basket, which in investing means you should not put all your faith and money in one investment, one company. Yes once in a while you hear of someone making a killing in the market. Ask them how many failures they have vs. big winners. Spread out your risk.

Warren Buffett, who runs the Berkshire Hathaway investments, believes in owning quality companies. He said, “If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.” This is a good check and balance for investors who tend to look for the next best hot tip. A good tip I heard years ago was, don’t bet on the horses.

Bernard Baruch was an American financier and economist who was an advisor to U.S. Presidents, including presidents Wilson, Hoover, Roosevelt and Truman. “Don’t try to buy at the bottom and sell at the top. It can’t be done, except by liars.”

There was another quote I heard years ago attributed to Warren Buffett, “You don’t know who has been swimming naked until the tide goes out.”

I honestly have no idea what that has to do with the markets?

 I hope you found these tidbits of interest. Please keep your requests coming in so we can answer the topics you are most interested in. Have a great spring.