“Investing is a popularity contest, and the most dangerous thing is to buy something at the peak of its popularity. At that point, all favorable facts and opinions are already factored into its price, and no new buyers are left to emerge.”

― Howard Marks, The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor

This Investor Raised Billions by Making Complicated Ideas Simple | Howard Marks (youtube.com)

For the uninitiated, Howard Marks has a favorite catchphrase: "The most important thing is...." And then he'll go on to list and explain all those things. Over the years, this phrase eventually morphed into the title of his book: The Most Important Thing Illuminated.

The truth of it is that there is no single "Most Important Thing" - there are many. A whole book full, and more.

Howard Marks Quotes (Author of The Most Important Thing) (goodreads.com)

(14) 10 Lessons From Howard Marks of Oaktree Capital | LinkedIn

1. Risk Management

Investment isn't about avoiding risk altogether.

Risk-free investments will usually bring risk-free returns (mediocre).

Rather, we should think about managing risk instead using tools such as:

Diversification, rebalancing, long time horizon, etc.

2. We are our own worst enemies

Investors make most of their mistakes not because of informational or analytical factors, but because of psychological ones.

The internet has made tons of information readily available to all investors.

What counts is how we react to that information.

[So attributing appropriate weight to the credibility of the source, and to the validity of the information. We must discount or ignore a fair chunk of what's out there, and focus on information that is reliable and accurate and comes from reliable sources. We must also form our own opinions on whether what we are reading or viewing is right, or wrong, or is likely to be right or wrong over time given other factors that we are aware of.]

3. The difference between luck and skill

Don't follow an investor just because of great results for that year or two.

Investing is like a game of poker, not chess.

Success could be temporary due to luck.

Look into his/her investment process to determine if it makes sense.

4. On forecasting

One recurring theme from great investors is that they ignore forecasts of all sorts.

It may be tempting to scratch the itch of thinking you can get a glimpse into the future by following gurus.

But remember, a broken clock is right twice a day.

5. Human nature

The swing between greed and fear is ingrained in the market.

It often swings to excesses and then overcorrects.

6. Switching between a cautious and aggressive mode

It's impossible to know when the tide will turn.

Many investors are paralyzed by indecision when a market does turn.

Market drawdowns often change the narrative of a business, even when fundamentally nothing has changed.

7. A bull market is a bad teacher

It makes you feel invincible, throws you off your position sizing and become aggressive with your forecasts.

Whenever there's a drawdown, make use of the opportunity to reflect and refine your investment philosophy.

8. Rewire your brain to like low prices

People should like something less when its price rises, but in investing they often like it more.

If you are going to be a net saver for some time, you should welcome market declines!

9. Second-level thinking

First-level thinkers look for simple formulas and easy answers.

Second-level thinkers know that success in investing is the antithesis of simple.

It is deep, complex, and convoluted.

10. Anti-fragility

Develop a respect for tail-end risks.

Put yourself in a position where you are not forced out of the market even when shit hits the fence.

Do not:

• Borrow to invest
• Sell naked puts and calls
• Invest your emergency fund

Timeless Financial Quotes

1. "An investment in knowledge pays the best interest." — Benjamin Franklin

When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research and analysis before making any investment decisions.

2. "Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows." — Jim Rogers

While 10- to 15-year lows are not common, they do happen. During these times, don't be shy about going against the trend and investing; you could make a fortune by making a bold move or lose your shirt. Remember the first quote in this article and invest in an industry you've researched thoroughly. Then, be prepared to see your investment sink lower before it turns around and starts to pay off.

3. "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." — Warren Buffett

Be prepared to invest in a down market and to "get out" in a soaring market, as per the philosophy of Warren Buffett.

4. "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

It's far too easy for investors to lose perspective. Whenever something big goes wrong, a lot of people panic and sell their investments. Looking at history, the markets recovered from the 2008 financial crisis, the dotcom crash, and even the Great Depression, so they'll probably get through whatever comes next as well.

Best Stock Market Quotes

5. "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros

Too many investors become obsessed with being right, even when the gains are small. Winning big and cutting your losses when you're wrong are more important than being right.

6. "Given a 10% chance of a 100 times payoff, you should take that bet every time." — Jeff Bezos

Most people dismiss many of the best and most profitable investment ideas simply because they probably won't work. These investors never stop to consider how much they could make if unlikely outcomes actually occur. Jeff Bezos took those bets and became the richest person in the world.

7. "Don't look for the needle in the haystack. Just buy the haystack!" — John Bogle

If it seems too hard to find the next Amazon, John Bogle came up with the only sure way to get in on the action. By buying an index fund, investors can put a little bit of money into every stock. That way, they never miss out on the stock market's biggest winners.

8. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." — Warren Buffett

Investors often make things too hard for themselves. The value stocks that Buffett prefers frequently outperform the market, making success easier. Supposedly sophisticated strategies, such as short selling, lose money in the long-run, so profiting is much more difficult.

9. "The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher

That is another testament to the fact that investing without an education and research will ultimately lead to regrettable investment decisions. Research is much more than just listening to popular opinion.

10. "In investing, what is comfortable is rarely profitable." — Robert Arnott

At times, you will have to step out of your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? Or getting out during the biggest rally of the century? There's no room for pride in this kind of self-analysis. The best investment strategy can turn into the worst if you don't have the stomach to see it through.

11. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen

Though investing in a savings account is a sure bet, your gains will be minimal due to the extremely low interest rates. But don't forgo one completely. A savings account is a reliable place for an emergency fund, whereas a market investment is not.

12. "If there is one common theme to the vast range of the world’s financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." — Carmen Reinhart

Beware of debts that seem sensible during periods of prosperity. When a crisis comes, individuals, companies, and even governments that ran up debts during the boom usually suffer the most.

13. "We don't prognosticate macroeconomic factors, we're looking at our companies from a bottom-up perspective on their long-run prospects of returning." — Mellody Hobson

It's very difficult to predict when the next recession or stock market crash will come, so many of the best investors don't even try. Instead, look for good companies with the strength to make it through the occasional challenging economic environment.

14. "Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off." — Carlos Slim Helu

Don't despair amid the inevitable setbacks that all investors face, especially during a crisis in the market. If the reasoning behind the investment was sound, stick with it, and it should eventually turn around.

15. "The individual investor should act consistently as an investor and not as a speculator." — Ben Graham

You are an investor, not someone who can predict the future. Base your decisions on real facts and analysis rather than risky, speculative forecasts.

Investment and Wealth Quotes

16. "The biggest risk of all is not taking one." — Mellody Hobson

There is a direct tradeoff between risk and returns. If investors stick to low-risk assets like the money market and bonds, then they run a high risk of low long-term returns.

17. "Returns matter a lot. It's our capital." — Abigail Johnson

The long-run rate of return on investments ultimately determines how much wealth people accumulate over time. Always look at returns when considering mutual funds or exchange-traded funds (ETFs).

18. "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." — Robert Kiyosaki

If you're a millionaire by the time you're 30 but blow it all by age 40, you've gained nothing. Grow and protect your investment portfolio by carefully diversifying it, and you may find yourself funding many generations to come.

19. "Know what you own, and know why you own it." — Peter Lynch

Do your homework before making a decision. Once you've made a decision, make sure to re-evaluate your portfolio on a timely basis. A wise holding today may not be a wise holding in the future.

20. "Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." — Dave Ramsey

By being modest in your spending, you can ensure you will have enough for retirement and can give back to the community as well.

21. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson

If you think investing is gambling, you're doing it wrong. The work involved requires planning and patience. However, the gains you see over time are indeed exciting.

Many of the best quotes about investing urge thoughtfulness over impulsiveness, boldness instead of caution, and smart research over flavor-of-the-month decision making.

Top Investing Quotes from Contrarians

22. "The four most dangerous words in investing are, it’s different this time." — Sir John Templeton

Follow market trends and history. Don't speculate that this particular time will be any different. For example, a major key to investing in a specific stock or bond fund is its performance over five years.

23. "Wide diversification is only required when investors do not understand what they are doing." — Warren Buffett

In the beginning, diversification is relevant. However, there are dangers of over-diversifying your portfolio. Once you've gotten your feet wet and have confidence in your investments, you can adjust your portfolio accordingly and make bigger bets.

24. "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

When hit with recessions or declines, you must stay the course. Economies are cyclical, and the markets have shown that they will recover. Make sure you are a part of those recoveries.

25. "The most contrarian thing of all is not to oppose the crowd but to think for yourself." — Peter Thiel

The Bottom Line

The world of investing can be cold and hard. Refer back to these quotes when you're feeling shaky or confused about investing. How are they relevant to your experience? Do you have any favorite quotes to add? Is there something you're overlooking that you could be doing differently? Whenever everything seems too tough, remember the words of Colin Powell, "A dream doesn't become reality through magic; it takes sweat, determination, and hard work."

Source: https://www.investopedia.com/financial-edge/0511/the-top-17-investing-quotes-of-all-time.aspx

Was brought up on the Compound and Friends podcast - which is (kinda) the American version of Motely Fool Money. Every week they talk about the macro and (almost) always come to the conclusion that a) no one really knows what is happening and b) it should not change how you invest for the long term.

Thought some of you might appreciate it