5 Essential Investing Quotes From Some Super Smart Guys
Quick Family Update: Over the 4th of July I took the whole family to a hotel on Lido Key to watch the boat races. For those of you who have never attended the event, I want you to imagine standing in the warm gulf of Mexico with hundreds of other people- and every single one of them is holding a beer.
And curiously, I didn’t see a single person leave the water in order to go to the bathroom. They must have strong bladders!
“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” –George Soros
Dave’s Commentary: He’s right. Our media culture today has made investing into a spectator sport. Turn off the financial news channel and savor the fact that a diversified portfolio of stocks and bonds (with at least half of the money in stocks) has averaged well over a 5% annual return for over 200 years.
“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 fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.” -Warren Buffett
Dave’s Commentary: I couldn’t have said it better myself. The human race is remarkably resilient, creative, and productive. It is so easy to say, “This time is different, the world is a mess.” But the world always has been, and always will be, messy. It didn’t stop businesses from making products, innovating technology, and making money for shareholders. Mr. Buffett made this comment 15 years ago and now the Dow is over 20,000!
“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” -Peter Lynch (Founder of Merrill Lynch)
Dave’s Commentary: It is easy to forget. When you place your money into a diversified portfolio of stocks and bonds, you are not gambling. You are investing.
“The investor’s chief problem — even his worst enemy — is likely to be himself.”
– Benjamin Graham
Dave’s Commentary: Throughout my 15 year career, I have personally witnessed many people just like you make emotionally charged financially decisions. Emotions and money are a terrible combination when it comes to your long-term investing success.
Please note: This is not a picture of Dave. It is a picture of his daughter because she is much cuter.
“When you retire you need to immediately begin spending a reasonable amount of money from your retirement accounts each month. The term ‘IRA’ stands for ‘Individual Retirement Account.’ It does not stand for, ‘Wait Until You Die and Let Your Kids Have Fun With All Your Money Account.’”
–Dave Kennon (Founder of Kennon Financial)
Note: Many of you are still calling us on our old phone number. Please take note that our new number is: 941-556-6307. The old phone number will be disconnected in the near future.