It’s a bloodbath out there.
We’re talking about the Philippine stock market, which booked its third consecutive drop yesterday, closing at 7,097.51 — a huge one-day loss of 2.36%. On Thursday and Friday last week, the PSEi started declining in value and, yesterday, the three-day accumulated loss already reached almost 4%.
As expected, the stock market frenzy sent some investors into panic mode. Several traders frantically sold stocks out of fear, while some looked for other people — brokers, friends, agents, financial advisers — to blame for the chaos in the market.
We know that the dust will settle soon. While waiting for that time to come and for stability to return to the market, we think it would be helpful to be reminded of ten (10) sensible quotes on stock market investing from some of the world’s best traders and investors.
It is our hope that their words can serve as guide and inspiration to all Filipino investors who are feeling lost / afraid / upset / uneasy / anxious / distressed / horrified about the current stock market situation.
There might be a bloodbath in the stock market right now but fret not, because it’s not yet the end of the world.
Here are some insights and quotes related to stocks and stock market investing that you may find useful.
Ten (10) Best Quotes on Stock Market Investing
- 1. “The investor’s chief problem – and even his worst enemy – is likely to be himself.” — Benjamin Graham (1894-1976), economist and investor, considered the first proponent of “Value Investing”, a concept in investments which involves buying stocks considered underpriced by some form of fundamental valuation
- 2. “If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.” — John Bogle (born 1929), founder of The Vanguard Group investment company and creator of the index fund
- 3. “Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market.” – Ron Chernow (born 1949), investor and business and finance journalist
- 4. “There’s no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or, worse, to buy more of it, when the fundamentals are deteriorating.” — Peter Lynch (born 1944), businessman and stock investor and author of the books “Beating the Street” and “One Up on Wall Street”
- 5. “You try to be greedy when others are fearful and you try to be very fearful when others are greedy.” — Warren Buffett (born 1930), CEO of Berkshire Hathaway and one of the world’s richest people
- 6. “Part of being a winner is knowing when enough is enough. Sometimes you have to give up the fight and walk away, and move on to something that’s more productive.” — Donald Trump (born 1946), real estate magnate and President of The Trump Organization
- 7. “The four most dangerous words in investing are: ‘This time it’s different.'” — John Templeton (1912-2008), British businessman and stock investor
- 8. “The dumbest reason in the world to buy a stock is because it’s going up.” — Warren Buffett
- 9. “The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.” — Benjamin Graham
- 10. “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch
Do you agree or disagree with the above quotes? Which one do you like best?
Read these other related, useful articles:
- Warren Buffet’s Best Quotes on Stocks and Investing
- [INFOGRAPHIC] 2013 List of World’s Richest People
- Primer and Tutorial on Stock Trading
- Top Stock Picks, Target Prices and Broker Recommendations