A Quote by Burton Malkiel
Historically, the stock market is like a gambling casino with the odds in your favor. Over the long pull, stocks are given something like nine and a half to ten percent compounded per year. The banks have probably given you something in the order of four to five.
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Successful investors like stocks better when they’re going down. When you go to a department store or a supermarket, you like to buy merchandise on sale, but it doesn’t work that way in the stock market. In the stock market, people panic when stocks are going down, so they like them less when they should like them more. When prices go down, you shouldn’t panic, but it’s hard to control your emotions when you’re overextended, when you see your net worth drop in half and you worry that you won’t have enough money to pay for your kids’ college.
If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%-or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening.
At any given time, ninety-nine-point-nine-five per cent of the human race are a confounded nuisance
If your credit is going to grow at 10-15 percent per year in order to get your 5 percent GDP growth per year, eventually you're going to have a problem. This isn't a stable system.
The model I like to sort of simplify the notion of what goes on in a market for common stocks is the pari-mutuel system at the racetrack. If you stop to think about it, a pari-mutuel system is a market. Everybody goes there and bets and the odds change based on what's bet. That's what happens in the stock market.
I think there are a lot of people out there that are speculating in the stock market. They have all kinds of tech stocks or social media stocks. If you want to gamble in the stock market, I would much rather gamble on a mining stock than a social media stock.
The ministers argue that within the context of scripture there's a requirement given by God that you've got to give ten percent of your income to the church. And if you give ten percent - here's the hook - God is going to reward your faithfulness by giving you that ten percent back, and a whole lot more.
The world is like a reverse casino. In a casino, if you gamble long enough, you're certainly going to lose. But in the real world, where the only thing you're gambling is, say, your time or your embarrassment, then the more stuff you do, the more you give luck a chance to find you.
"Average" isn't so hot at the race track given those steep track takes. "Average" is pretty decent for stocks, something like 6 percent above the inflation rate. For a buy-and -hold investor, commissions and taxes are small.
It's like a crapshoot in Las Vegas, except in Las Vegas the odds are with the house. As for the market, the odds are with you, because on average over the long run, the market has paid off.
Over the long term, despite significant drops from time to time, stocks (especially an intelligently selected stock portfolio) will be one of your best investment options. The trick is to GET to the long term. Think in terms of 5 years, 10 years and longer. Do your planning and asset allocation ahead of time. Choose a portion of your assets to invest in the stock market - and stick with it! Yes, the bad times will come, but over the truly long term, the good times will win out - and I hope the lessons from 2008 will help get you there to enjoy them.
People have proven over and over that they will read if they are given something they like. The problem with reading is not reading, its that almost everything out there sucks. For so long, publishing has been run by a cartel of snobby pseudo-intellectual failed writers, and the resulting output has reflected not what the market wants, but what they think people are supposed to read.
The national debt has given rise to joint stock companies, to dealings in negotiable effects of all kinds, and to agiotage , in a word to stock-exchange gambling and the modern bankocracy .
On the Glass-Steagall thing, like I said, if you could demonstrate to me that it was a mistake, I'd be glad to look at the evidence. But I can't blame [the Republicans]. This wasn't something they forced me into. I really believed that given the level of oversight of banks and their ability to have more patient capital, if you made it possible for [banks] to go into the investment banking business as continental European investment banks could always do, that it might give us a more stable source of long-term investment.
Myopia, in more than ninety-five percent of cases, begins between five and ten years of age. It increases largely because the myopic eye is given a minus lens.
It's going to get even worse if Hillary [Clinton] follows her plan that I describe in Reclaiming Our Children. But even now in many, many schools the nurses are giving out more drugs than were given out in children's mental hospitals when I was in training. You can go into a school today and find that ten or twenty percent of the boys are on drugs given by the school nurse. I just recently visited a school where over half of the children were being given drugs.
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