A Quote by Whitney Tilson
When reviewing one's portfolio, it is important to be aware of common mental mistakes that may lead to bad decisions. The most powerful is commitment bias, which, as manifested in investing, is the tendency to fall in love with one's stocks.
Related Quotes
Some sort of belief in all-powerful supernatural beings is common, if not universal. A tendency to obey authority, perhaps especially in children, a tendency to believe what you're told, a tendency to fear your own death, a tendency to wish to see your loved ones who have died, to wish to see them again, a wish to understand where you came from, where the world came from, all these psychological predispositions, under the right cultural conditions, tend to lead to people believing in things for which there is no evidence.
In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.
Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
There is one thing of which I can assure you. If good performance of the fund is even a minor objective, any portfolio encompassing one hundred stocks (whether the manager is handling one thousand dollars or one billion dollars) is not being operated logically. The addition of the one hundredth stock simply can't reduce the potential variance in portfolio performance sufficiently to compensate for the negative effect its inclusion has on the overall portfolio expectation.
If you hope to have more money tomorrow than you have today, you've got to put a chunk of your assets into stocks. Sooner or later, a portfolio of stocks or stock mutual funds will turn out to be a lot more valuable than a portfolio of bonds or CDs or money-market funds.
Both cheap value stocks and more glamorous growth stocks can work well in a portfolio - if done right.
Love for one's motherland is one of the most powerful and uplifting feelings. It manifested itself in full in the brotherly support to the people of Crimea and Sevastopol, when they resolutely decided to return home, this event will remain a very important epoch in domestic history forever.
Mother love is the most powerful, the most irrational force on earth, even more powerful than sexual love. However, one does lead to the other, so best not to spurn the former.
In investing, you get what you don't pay for. Costs matter. So intelligent investors will use low-cost index funds to build a diversified portfolio of stocks and bonds, and they will stay the course. And they won't be foolish enough to think that they can consistently outsmart the market.
An important key to investing is to remember that stocks are not lottery tickets.
I have learned from my mistakes and accept that change is important. Not all change is bad. Therefore, you have to be more mindful and accountable about the decisions you make in life. Even though I've made mistakes, I can say my journey is full of authenticity because I didn't deny my ups and downs.
Well, the most important thing in investing is to know what you're investing in, and if you're confident in the outcome, it's important to stay true to your position.
If you expect to continue to purchase stocks throughout your life, you should welcome price declines as a way to add stocks more cheaply to your portfolio.
Investing in a poker game and investing in stocks, at least the way I do it, it's a very similar skillset.
The most important decisions in organizations are people decisions, and yet only the military, and only recently, has begun to ask, "If we assign this general to lead this base, what do we expect him to accomplish?"
The history of the past fifty years, and longer, indicates that a diversified holding of representative common stocks will prove more profitable over a stretch of years than a bond portfolio, with one important provisio that the shares must be purchased at reasonable market levels, that is, levels that are reasonable in the light of fairly well-defined standards derived from past experience.
Related Authors
Bill Gates Quotes
American
Businessman
Charlie Munger Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman
Warren Buffett Quotes
American
Businessman