Concentrate your energy, thought and capital exclusively upon the business in which you are engaged... 'Don't put all your eggs in one basket' is all wrong. I tell you 'put all your eggs in one basket, and then watch that basket.'
Time is the most valuable asset you don't own.
The idea of excessive diversification is madness.
You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk; you are going to be punished for it.
All sensible investing is value investing
The idea of excessive diversification is madness. Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results.
Put all your eggs in one basket and then watch that basket.
There are two times in a man's life when he should not speculate [on the Stock Market]: when he can't afford it, and when he can.
Samuel Langhorne Clemens, 1835-1910
The way to become rich is to put all your eggs in one basket and then watch that basket.
Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.
Making an investment decision is like formulating a scientific hypothesis and submitting it to a practical test. The main difference is that the hypothesis that underlies an investment decision is intended to make money and not to establish a universally valid generalization.
The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and/or portfolio income.
I have only ever borrowed money for investment. I have been sound money all my life.
Having the opportunity to follow the market frequently gives you the opportunity to see if you need to reevaluate your portfolio. But reevaluating your portfolio shouldn't trigger a sell signal so frequently.
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.
People do dollar cost averaging because they have regret of making one big mistake. But the fact of the matter is that, mathematically, the market rises more of the time than it falls. It falls, but it rises more of the time than it falls.
Stock-picking is like gambling: those who win well, seldom bet, but when they do, they bet heavily.
Behold, the fool saith, "Put not all thine eggs in the one basket" - which is but a matter of saying, "Scatter your money and your attention"; but the wise man saith, "Pull all your eggs in the one basket and - WATCH THAT BASKET." - Pudd'nhead Wilson's Calendar
We talk about long-term patient investing, and that idea that slow and steady does win the race, that time can be your best friend when it comes to investing. That's why we have a turtle as a logo at Ariel.
Those who don't manage their money will always work for those who do
I don't spend my life making money to spend tomorrow, or to acquire possessions.
Some people, through luck and skill, end up with a lot of assets. If you're good at kicking a ball, writing software, investing in stocks, it pays extremely well.
Nobody ever lost money taking a profit.
When you build a bridge, you insist that it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. And that same principle works in investing.
When I started going to business school, I started getting calls from my peers asking for my help. I thought, 'Well, there are a lot of people like me who make a bunch of money and just get so scared of it and don't know what to do with it.' I just didn't want to be 60 years old and broke.
