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The real key to making money in stocks is not to get scared out of them.
Peter Lynch
Money
Key
Out
Scared
Making
Real
Making Money
Stocks
Get
Them
Many novice real estate investors soon quit the profession and invest in a well-diversified portfolio of bonds. That's because, when you invest in real estate, you often see a side of humanity that stocks, bonds, mutual funds, and saving money shelter you from.
Robert Kiyosaki
You
Mutual Funds
Humanity
Money
Real Estate
Saving
Saving Money
Side
See
Mutual
Invest
Investors
Soon
Because
Shelter
Real
Stocks
Quit
Often
Estate
Profession
Many
Novice
Portfolio
Funds
Bonds
Cash - in savings accounts, short-term CDs or money market deposits - is great for an emergency fund. But to fulfill a long-term investment goal like funding your retirement, consider buying stocks. The more distant your financial target, the longer inflation will gnaw at the purchasing power of your money.
Suze Orman
Great
Money
Financial
Inflation
Will
Power
Savings
Consider
Savings Accounts
Market
Distant
Purchasing
Purchasing Power
Emergency
Cash
More
Investment
Retirement
Long-Term
Longer
Like
Gnaw
Goal
Target
Accounts
Stocks
Short-Term
Fulfill
Your
Fund
Funding
Buying
Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.
Ron Chernow
You
Mutual Funds
Safety
Responsibility
Mutual
Diversification
Individual
Picking
Historically
Offered
Stocks
Spare
Funds
Money you won't need to use for at least seven years is money for investing. The goal here is to have your account grow over time to help you finance a distant goal, such as building a retirement fund. Since your goal is in the future, money for investing belongs in stocks.
Suze Orman
Finance
Future
Time
You
Money
Building
Seven
Distant
Investing
Retirement
Over
Since
Least
Years
Goal
Account
Stocks
Use
Your
Help
Grow
Fund
Here
Belongs
Need
Rising interest rates are considered bad for stocks because they raise the cost of doing business and depress corporate earnings and because higher yields make bonds relatively more attractive than stocks to investors.
Alex Berenson
Business
Earnings
Corporate
Relatively
Considered
Bad
Cost
Rates
Rising
More
Higher
Investors
Attractive
Make
Because
Doing
Yields
Than
Stocks
Interest
Interest Rates
Depress
Raise
Bonds
Traditionally, companies have made major announcements before or after the close of trading so that all interested investors and analysts are apprised of the news before trading resumes in their stocks.
Alex Berenson
News
Made
Before
Analyst
Investors
Announcement
Major
Trading
Close
Stocks
After
Interested
Companies
It's one of the fundamental principles of the stock market: When interest rates go up, stocks go down. And along with financial companies and cyclicals, technology companies - with their sky-high price-to-earnings multiples - should be among the biggest losers in an environment of rising rates.
Alex Berenson
Technology
Financial
Down
Market
Rates
Rising
Environment
Along
Principles
Go
Losers
Up
Stock
Stock Market
Stocks
Biggest
Interest
Interest Rates
Should
Companies
Fundamental
Among
Fundamental Principles
Technology Companies
Lower interest rates are usually considered good for stocks because they lower the cost of borrowing and make bonds a less attractive alternative investment.
Alex Berenson
Good
Considered
Cost
Borrowing
Rates
Investment
Attractive
Make
Alternative
Because
Stocks
Interest
Interest Rates
Lower
Less
Bonds
Investors have been too willing to buy stocks with strong reported earnings, even if they do not understand how the earnings are produced.
Alex Berenson
Buy
Strong
Too
Earnings
Willing
Investors
Understand
How
Been
Stocks
Reported
Produced
Even
Corporate executives often buy or sell shares in their companies, and stocks rarely rise or fall significantly when those transactions are reported.
Alex Berenson
Buy
Fall
Corporate
Those
Rarely
Rise
Shares
Executives
Sell
Stocks
Reported
Often
Transactions
Companies
I became CEO at the beginning of the hit on old economy stocks. When something like that occurs in your first six months as a CEO of a more traditional branded firm, it makes for a fast learning curve.
Andrea Jung
Learning
Old
First
Beginning
Months
Something
More
Firm
Like
Economy
Became
Learning Curve
Makes
Occurs
Traditional
Branded
Hit
Stocks
Six
Curve
CEO
Your
Fast
I'm not a stock expert by any means. Stocks go up; they go down.
Aneel Bhusri
Down
Go
Up
Stock
Stocks
Any
Expert
Means
Any time you speak to people about their posture, you learn about their most recent investment activity. When someone just bought stocks, they tend to be bullish; someone who just sold is bearish.
Barry Ritholtz
Time
You
People
Speak
Sold
About
Someone
Posture
Tend
Investment
Bought
Most
Learn
Bullish
Stocks
Any
Just
Who
Activity
Recent
Truth be told, most financial television bores me. Two or more people discussing the latest economic trends or hot stocks is not especially entertaining.
Barry Ritholtz
Truth
Me
People
Financial
Trends
Latest
Television
Entertaining
Bores
More
More People
Economic
Hot
Most
Stocks
Discussing
Two
Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.
Barry Ritholtz
Real Estate
Will
Markets
Classes
Some
Emerging
Diversified
Small
Variety
Part
Arises
Well
Real
Doing
Stocks
Fixed
Owning
Commodities
Estate
Cap
Turmoil
Means
Your
Cyclical
Large
Income
Asset
Portfolio
The United States, a signatory to the Chemical Weapons Convention, destroyed the last of its stocks of VX and other chemical agents on the Johnston Atoll, 825 miles southwest of Hawaii, in November 2000.
Barton Gellman
November
Other
States
Destroyed
Weapons
Hawaii
Chemical
Stocks
Southwest
Convention
Agents
Miles
United
United States
Last
80 percent of our global fish stocks are fully exploited, overly exploited or have collapsed. Two billion people rely on the oceans for their primary source of protein.
Barton Seaver
People
Our
Collapsed
Percent
Rely
Primary
Primary Source
Global
Protein
Oceans
Overly
Fish
Source
Stocks
Exploited
Billion
Fully
Two
Trying to pick individual stocks is a trap. I can't do it. Warren Buffett can, but hardly anyone else can beat the indexes over a long period of time.
Ben Stein
Time
Long
Else
Individual
Beat
Long Period
Pick
Over
Period
Stocks
Trying
Anyone
Anyone Else
Warren
Warren Buffett
Trap
Hardly
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.
Benjamin Graham
Hope
Time
People
Fear
Greed
Way
Give
Directions
Both
Tendency
Price
Excessive
Most
Subject
Stocks
Irrational
Common
Ingrained
Gamble
Speculate
Consequence
The least punk thing I ever did was open a money market account. Blue chip stocks. Mutual funds. They're a very safe and dependable way to grow your money long-term.
Benji Madden
Mutual Funds
Money
Punk
Market
Way
Mutual
Open
Long-Term
Safe
Least
Very
Account
Stocks
Did
Blue
Dependable
Chip
Your
Grow
Ever
Thing
Funds
Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.
Bill Gross
Both
Investor
Go
Stocks
Where
Wants
Standpoint
Growth
Bonds
Traditional investment vehicles such as IRAs, CDs, stocks and bonds do have their place, but for the rich, they are used more as temporary storage facilities rather than life-long homes.
Bo Bennett
Rich
Temporary
Rather
More
Facilities
Life-Long
Investment
Vehicles
Traditional
Than
Stocks
Storage
Place
Used
Homes
Bonds
When we had the 'flash crash' in 2010, where the price of some stocks briefly fell to zero, high-frequency trading played a big role in that event.
Brad Katsuyama
Big
Some
Price
Had
Fell
Trading
Stocks
Role
Flash
Where
Crash
Event
Zero
Played
On Cape Cod, great white shark stocks have been growing, or at least becoming more concentrated, because of the multiplying numbers of seals around Monomoy Island. We are fortunate to have such abundance of these sharks in our own waters. Around the globe, we are killing in excess of 100 million sharks each year.
Brian Skerry
Great
Sharks
Year
Own
White
Waters
Our
More
Excess
Shark
Abundance
Concentrated
Globe
Because
Around
Island
Becoming
Least
Been
Stocks
Cape
Fortunate
Seals
Each
Growing
Multiplying
Each Year
Million
Numbers
Not so long ago, companies that borrowed lots of money were considered risky, appropriate only for daredevil stock pickers. Those with lots of cash on hand and few outstanding debts might be dull stocks, but they were at least safe bets for bondholders.
Charles Duhigg
Money
Long
Few
Appropriate
Considered
Those
Daredevil
Borrowed
Cash
Bets
Only
Risky
Outstanding
Safe
Least
Were
Dull
Hand
Lots
Stock
Debts
Stocks
Might
Companies
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