REPOST: Warren Buffett's 23 Best Quotes About Investing 5-27-2014

Warren Buffett's 23 Best Quotes About Investing

• Sam Ro

REUTERS/Rick Wilking

A huge picture of Berkshire Hathaway Chairman Warren Buffett looks over shareholders swarming the exhibit floor where companies owned by Berkshire display and sell their products, at the company's annual meeting in Omaha May 4, 2013.

Warren Buffett's 2013 annual letter to Berkshire Hathaway shareholders included six "fundamentals of investing." Not only is Buffett the most successful investor in history. He also shares his wisdom in an approachable and entertaining manner.
We compiled a few of Buffett's best quotes from his TV appearances, newspaper op-eds, magazine interviews, and of course his annual letters.
Investing novices and experts alike can learn from the advice that the he has articulated through the years.
If we've missed any of your favorites, let us know in the comments.

Buying a stock is about more than just the price.

Vintage Coca Cola ad

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Source: Letter to shareholders, 1989

You don't have to be a genius to invest well.

AP Photo

"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ."
Source: Warren Buffet Speaks, via msnbc.msn

But, master the basics.

REUTERS/Jim Young

University of Chicago professor Eugene F. Fama, father of the efficient markets hypothesis.

"To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices."
Source: Chairman's Letter, 1996

Don't buy a stock just because everyone hates it.

Flickr / Mark Rain

"None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What's required is thinking rather than polling. Unfortunately, Bertrand Russell's observation about life in general applies with unusual force in the financial world: "Most men would rather die than think. Many do."
Source: Chairman's Letter, 1990

Bad things aren't obvious when times are good.

tavopp / Flickr

"After all, you only find out who is swimming naked when the tide goes out."
Source: Letter to shareholders, 2001

Always be liquid.

flickr / Doug Wertman

"I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits."
 Source: Letter to shareholders, 2008

The best time to buy a company is when it's in trouble.

Reuters

"The best thing that happens to us is when a great company gets into temporary trouble...We want to buy them when they're on the operating table."
Source: Businessweek, 1999

Stocks have always come out of crises.

AP

"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."
Source: The New York Times, October 16, 2008

Don't be fooled by that Cinderella feeling you get from great returns.

Instagram/disneycl

"The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities ¾ that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future ¾ will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands."
Source: Letter to shareholders, 2000

Think long-term.

Wikimedia Commons

"Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards - so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
Source: Chairman's Letter, 1996

Forever is a good holding period.

Wikimedia Commons

"When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
Source: Letter to shareholders, 1988

Buy businesses that can be run by idiots.

MovieClips / YouTube

Dumb & Dumber

"I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will."
Source: Business Insider

Be greedy when others are fearful.

IMDB, Twentieth Century Fox

Gordon Gekko, "Wall Street"

"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."
Source: Letter to shareholders, 2004

You don't have to move at every opportunity.

@PeterMcEvoy2

"The stock market is a no-called-strike game. You don't have to swing at everything--you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, 'Swing, you bum!'"
Source: The Tao of Warren Buffett via Engineeringnews.com

Ignore politics and macroeconomics when picking stocks.

AP Photo/Horst Faas

"We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.
"But, surprise - none of these blockbuster events made the slightest dent in Ben Graham's investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, then, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.

Source: Chairman's Letter, 1994

The more you trade, the more you underperform.

Wikimedia Commons

Isaac Newton

"Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases."
Source: Letters to shareholders, 2005

Price and value are not the same

REUTERS/Eric Gaillard

"Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.' Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down."
Source: Letter to shareholders, 2008

There are no bonus points for complicated investments.

REUTERS/Kai Pfaffenbach

"Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).
"Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn’t count. If you are right about a business whole value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables."
Source: Chairman's Letter, 1994

A good businessperson makes a good investor.

REUTERS/James Lawler Duggan

Warren Buffett

"I am a better investor because I am a businessman, and a better businessman because I am no investor."
Source: Forbes.com - Thoughts On The Business Life

Higher taxes aren't a dealbreaker.

MoneyBlogNewz / Flickr

"SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”
Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist."
Source: New York Times

Companies that don't change can be great investments.

Wikimedia Commons

"Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it's the lack of change that appeals to me. I don't think it is going to be hurt by the Internet. That's the kind of business I like."

Source: Businessweek, 1999

Time will tell.

Flickr/Dadune

"Time is the friend of the wonderful business, the enemy of the mediocre."
Source: Letters to shareholders 1989

This is the most important thing.

YouTube

"Rule No. 1: never lose money; rule No. 2: don't forget rule No. 1"
Source: The Tao of Warren Buffett

Germany hits all time high

Germany hits all time high. Looking to push more upside before the close.

Elliot Wave Count by Tony- you know the drill 5-26-2014

 Elliot Wave analysis is a good tool/equipment on wave counting which projects their usual retracements and movements including emotional aspects.

Elliot Wave analysis is here to help us do counting on wave movements, a little time consuming and more important is that the trader needs to adjust hit points when unexpected count occur. At times, wave count end earlier than expected, at times, waves extend, extend and over extend.

Charts above are illustrations of Tony Caldaro, and one of the potential Elliot Wave count out there.

You know the drill :)

PSEi index snapshot 5-26-2014

China and HK. Laggard markets 5-20-2014

Technically speaking, China index is still not looking good. It is still near its 52 week low, and a break below 2000 level could trigger another selloff.

The lowest area since 2008 recession was 1700. And we are nearly into that level.

DOW JONES is now at 16500, from 65xx last 2009 lows. And China is way nowhere to be found and cannot be likely said to be in a Bull Market.

HK index also has not made any new high since 2011 peak at 24700.

Now at 9.5x P/E, looks very cheap VS Philippines(20.5x) and US(16.5x), it has not made any good uptrend rallies and is hovering around the 5yr Bull Market support.

Long Term support is at 21500 and looks very weak compared to all Major Index in the world.

Technical warning on NASDAQ and SPX Small Caps 5-12-2014

At this point we time, we raise a technical warning on the weakness of NASDAQ and SPX Small Caps.

Currently, we are possibly in the right shoulder of an inverter head and shoulder pattern.

A fall below 4000 for Nasdaq could trigger this.

A bounce above 4000 and make higher high above the right shoulder/neck will invalidate this bearish scenario.

IMF says Russia is in recession 5-2-2014

After US markets net gained 30% or more for 2013, This year could possibly be a flat year or modest year for the US.

Most technical indicators and historical analysis suggest that :

a. after a sizable rally in any year, following years could be flat or at a modest gain or even correction

b. Elliot Wave analysis suggest that this year could be the Primary Wave IV and could be as huge as 2011 Primary Wave II correction that slumped US markets by 22%

Could the news on Russia's Reccession be the reason or one of the reasons that could spark of the markets? Could be, or US could extend again and rally until next year.

IMF says Russia is in recession

AFP News – Wed, Apr 30, 2014

The International Monetary Fund said on Wednesday that Russia is already in recession and slashed its growth forecast for 2014 citing the effect of the Ukraine crisis on investment.

"If we define recession as negative growth in two quarters in a row, then Russia from that point of view is experiencing recession," IMF economist Antonio Spilimbergo was quoted as saying by the Interfax news agency.
The IMF has lowered its 2014 growth forecast for Russia to 0.2 percent from the 1.3-percent figure it issued on April 8, Spilimbergo said.
"We have clarified our forecast on Russia's economic growth. We expect growth at the level of 0.2 percent this year."
The IMF's decision came taking into account "the difficult current situation and the significant level of uncertainty related to geopolitical tensions and sanctions," Spilimbergo was quoted as saying in comments translated into Russian.
"This all has a very negative effect on the investment climate," he said.
"We expect that the fall in investments that already took place in 2013 will increase further this year."
Russia's economy contracted by about 0.5 percent in the first three months of the year compared with the previous quarter.
The finance ministry warned this month that the economy could tip into recession in the second quarter.
Finance Minister Anton Siluanov said this month that Russia could see growth of 0.5 percent in 2014 but warned growth could be only "around zero".
Standard and Poor's ratings agency on Friday downgraded Russia's ability to repay debt to BBB-, one notch above junk status, and retained its negative outlook.
Russia's economy has already seen colossal capital flight since the start of the Ukraine crisis as investors have pulled out their funds.
Spilimbergo said the IMF "expects capital outflows this year at a level of $100 billion," but that a "high degree of uncertainty" remained.
Russia's government has predicted capital outflows over 2014 of between $70 and $100 billion. Russia's central bank said that capital flight in the first quarter alone amounted to $50.6 billion.
Spilimbergo said the IMF was forecasting 1.0-percent growth in Russia in 2015, down from its previous forecast of 2.3 percent.

https://ph.news.yahoo.com/imf-says-russia-recession-095137567.html