Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Archive for the ‘Money Mantras’ Category

Wise words on market timing

Posted by Muthu on January 19, 2016

Some wise quotes on market timing for you to mull over:

1)“Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.”- Warren Buffett

2) “‘Market timing’ is unappealing to long-term investors. As in hunting deer or fishing for rainbow trout, investors have learned the importance of ‘being there’ and using patient persistence – so they are there when opportunity knocks.”- Charles Ellis

3) “Only liars manage to always be out during bad times and in during good times.”- Bernard Baruch

4) “I can’t recall ever once having seen the name of a market timer on Forbes’ annual list of the richest people in the world. If it were truly possible to predict corrections, you’d think somebody would have made billions by doing it.”- Peter Lynch

5) “Market timing recommendations have an impressive track record of being harmful to an investor’s financial health.”- Peter Bernstein

 6) “I do not know of anybody who had done market timing successfully. I don’t even know anybody who knows anybody who has done it successfully and consistently.”John Bogle

7) “If you’re determined to succeed at investing, make it your first priority to become a buy-and-hold investor.” -Jack Brennan

8) “Do nothing. I think all of this market timing is statistically unfounded. I don’t trust it. You may avoid a downturn, but you may also miss the rise. Choose the risk tolerance you’re OK with and hold tight.” – Eugene Fama

9) “Your very refusal to be active, and your renunciation of any pretended ability to predict the future, can become your most powerful weapon.”- Jason Zweig

10) After receiving the Nobel Prize, Daniel Kahneman, was asked by a CNBC anchorman what investment tips he had for viewers. His answer: “Buy and hold.”

11) “We’ve yet to find anyone who can accurately and consistently predict the market’s short-term moves.”- The Motley Fool

12) “In the long run it doesn’t matter much whether your timing is great or lousy. What matters is that you stay invested.” -Louis Rukeyser

13) “Stay invested. Not only does buy-and-hold investing offer better returns, but it’s also less work.” -Eric Tyson

14) “It’s a staple of personal finance advice: Buy-and-hold, because trading the stock market is a sucker’s bet.”- Larry Swedroe

15) “Investors desperately want to believe they can time the markets, but the statistics tell a different story.” -Liz Ann Saunders

16) “The market timer’s Hall of Fame is an empty room.” -Jane Bryant

17) “We have found that the fund managers who tend to perform the best over time are the ones who spend the least amount of time debating which way the market is heading” -Don Phillips

18) “Trying to anticipate any market’s ups and downs can be a costly, and futile, exercise.-Wm McNabb

19) “Timing the market is for losers. Time IN the market will get you to the winner’s circle, and you’ll sleep better at night.” -Michael Leboeuf

20) “If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting that’s going to happen to the stock market.”- Benjamin Graham

21) “Don’t sell out of fear or buy out of greed. Just keep making investments, and let the market take its course over the long-term.”- Norman Fosback

22) “The odds that you will achieve long-term success by actively trading or timing the market round to zero.”- Morgan Housel

23) “Winning with stocks requires only patience, not foresight.”- Jeremy Siegel

24) “People should stop chasing performance and just put together a sensible portfolio regardless of the ups and downs of the market.”- David Swensen

25) “What it really takes to improve your returns and diminish your risks is a willingness to stop focusing exclusively on the movement of the markets.”-Baer & Ginsle

26) “The average investor’s return is significantly lower than market indices due primarily to market timing.”- Daniel Kahneman

27) “Do you know what investing for the long run but listening to market news everyday is like? It’s like a man walking up a big hill with a yo-yo and keeping his eyes fixed on the yo-yo instead of the hill.”- Alan Abelson

28) “In the financial markets, hindsight is forever 20/20, but foresight is legally blind. And thus, for most investors, market timing is a practical and emotional impossibility.”- Benjamin Graham

29) “It is in the nature of stock markets to go way down from time to time. There is no system to avoid bad markets. You can’t do it unless you try to time the market, which is a seriously dumb thing to do. Conservative investing with steady savings, without expecting miracles, is the way to go.”- Charlie Munger

30) “I do not believe it possible to play the in and out game and still make the enormous profits that have accrued again and again to the truly long-term holder of the right stocks.”- Philip Fisher

Posted in General, Money Mantras | 3 Comments »

Warren Buffett Speaks (Money Mantras….20)

Posted by Muthu on January 1, 2010

Wishing you a very wonderful new year 2010.

I take this opportunity to convey my gratitude for your continued support and trust in us.

As mentioned in my last series of Money Mantras, I’ve been reading the book, Warren Buffett Speaks- Wit and Wisdom from the World’s greatest Investor’ by Janet Lowe.

On this New Year day, I’m delighted to share with you some more interesting and insightful quotes of my beloved master, Warren Buffet.

1) Diversification is a protection against ignorance. It makes little sense for those who know what they are doing.

2) A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don’t need to own very many of them.

3) That which is not worth doing is not worth doing well.

4) If at first you do succeed, quit trying.

5) The only way to slow down is to stop.

6) There is nothing like writing to force you to think and to get your thoughts straight.

7) When proper temperament joins with proper intellectual framework, then you get rational behaviour.

8) If principles can become dated, they’re not principles.

9) It is sort of the ultimate act of generosity when you go out and teach someone something that is going to be harmful to your own commercial well being.

10) I would be a bum on the street with a tin cup if the markets were always efficient.

11) Investing in a market where people believe in efficiency is like playing bridge with someone who has been told that it doesn’t do any good to look at the cards.

12) It has been helpful for me to have tens of thousands (of students) turned out of business schools taught that it didn’t do any good to think.

13) John Maynard Keynes essentially said, don’t try and figure out what the market is doing. Figure out a business you understand and concentrate.

14) For some reason, people take their cue from price action rather than from values. What doesn’t work is when you start doing things you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock  is because it’s going up.

15) The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty is actually the friend of the buyer of long term values.

16) Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.

17) 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 a 130 IQ. Rationality is essential.

18) Happily, there’s more than one way to get to financial heaven.

19) Of course, the investor of today does not profit from yesterday’s growth.

20) If the business does well, the stock eventually follows.

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Warren Buffett Speaks (Money Mantras….19)

Posted by Muthu on December 10, 2009

Many of us have role models or mentors or Gurus. It is not necessary that we should be known to them. It is enough if we know them and be willing to learn from them and develop their traits.

I’ve number of such mentors in both spiritual and financial arena.

J.Krishnamurthi, Eckhart Tolle, Nisargadatta, Ramana, Anthony de Mello, Paramacharya are some among the many names which comes to my mind as my spiritual mentors.

Likewise Warren Buffett, Peter Lynch, Benjamin Graham, John C.Bogle, Phil Fisher, Sir John Templeton are some among many who have shaped my approach towards ‘Personal Finance’.

I’m grateful to all of the above and continue to learn from them and get their guidance in various aspects of Life.

Currently, among the some books I’m reading, I want to share with you what I’m reading in the book ‘Warren Buffett Speaks- Wit and Wisdom from the World’s greatest Investor’ by Janet Lowe. As always with Buffett books, this book too contains his quotes of wit and wisdom in abundance.

1) Buffett’s opinion on dealing with press: As you may be surprised to know seldom there is a negative press about him even in a country like USA. Buffett always opines that it takes 20 years to build a reputation and 5 minutes to ruin it. If we think about it we will do things differently. Now let’s listen to what he says about Press.

“The tough part about it is that essentially there is no one, virtually with the exception of an assassin, that can do you as much damage as somebody can in the press, if they do something the wrong way.There may be Doctors out there who can do you just as much harm, but in that case, you initiate the transaction.”

2) On feeling good:

 “I keep an internal scoreboard. If I do something that others don’t like but I feel good about, I’m happy. If others praise something I’ve done, but I’m not satisfied, I feel unhappy”

 3) When Buffett asked his mentor, Benjahmin Graham for a job with no salary as he was very keen to work under him:

 “Ben made his customary calculation of value to price and said no.”

 4) When a journalist commented that Buffett wears cheap suits, with his characteristic wit he said:

 “I buy expensive suits. They just look cheap on me.”

 5) On aiming well:

“To swim a fast 100 meters, it’s better to swim with the tide than to work on your stroke.”

“Like Wayne Gretzky says, go where the puck is going, not where it is.”

6) On his Life style (which is very simple):

“I can’t think of anything in life I want that I don’t have.”

“It’s easier to create money than spend it.”

“I don’t measure my life by the money I’ve made. Other people might, but I certainly don’t.”

“Money, to some extent, sometimes lets you be in more interesting environments. But it can’t change how many people love you or how healthy you are.”

7) On honesty:

“Never lie under any circumstances. Don’t pay any attention to the lawyers. If you start letting lawyers get into the picture, they’ll basically tell you, ‘don’t say anything’. You’ll never get tangled up if you just lay out as you see it“.

8) On Friendship:

On how to define friendship

“I remember asking that question of a woman who has survived Auschwitz. She said that her test was, ‘would they hide me’?”

“I’ve a half dozen close friends. Half male, half female, as it works out. I like them, admire them. There are no shells around them”.

9) Buffet opines that inherited wealth is nothing but food stamps for rich.

“All these people who think that food stamps are debilitating and lead to a cycle of poverty, they’re the same ones who go out and want to leave a ton of money to their kids.”

10) As mentioned above Buffett does not believe in inherited wealth. Infact he has given almost his entire wealth to Bill & Melinda foundation for charity. He is not only the largest investor but also the largest giver (donor) in the world. When Buffett’s son Howard ran for country commissioner in Omaha, people assumed that because of his surname, his campaign would be well financed.On the contrary Warren Buffett said:

“I asked him to spell his name in lowercase letters so that everyone would realize that he was the Buffett without the capital”

(With inputs from: Warren Buffet Speaks-Wit and Wisdom from the World’s Greatest Investor by Janet Lowe)

Posted in Money Mantras, Warren Buffett | 1 Comment »

Some more on The Tao of Warren Buffett (Money Mantras….18)

Posted by Muthu on November 24, 2009

November 22’nd was my 5th wedding anniversary and wanted to share with you the last article in the series of ‘The Tao of Warren Buffett’ on that day. As I could not find time on that day (you may know why!), I woke up at 4 am today for writing this blog.

I received lot of feedback that the wisdom nuggets from the great master were highly enjoyable. Here is the last set in the above series of articles. Please do read and share your feedback.

It so happened that the month of November happened to be a month of ‘Money Mantras’.

Enjoy the current ride in stock market with caution and make some good money.

Now the Master Speaks…

1) There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of the bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t it that a little like saving up sex for your old age?

2) Wouldn’t be great if we could buy love for $1 Million. But the only way to be loved is be lovable. You always get back more than you give away. If you don’t give any, you won’t get any. There’s nobody I know who commands the love of others who doesn’t feel like a success. And I can’t imagine people who aren’t loved feel very successful.

3) When ideas fail, words come in very handy.

4) I’m a better investor because I am a businessman and a better businessman because I am an investor.

5) When a chief executive officer is encouraged by his advisers to make deals, he responds much as would a teenage boy who is encouraged by his father to have a normal sex life. It’s not a push he needs.

6) The reaction of weak management to weak operations is often weak accounting.

7) With each investment you make, you should have the courage and conviction to place atleast 10% of your networth in that stock.

8) My idea of a group decision is to look in the mirror.

9) It is impossible to unsign a contract, so do all your thinking before you sign.

10) The great personal fortunes in this country weren’t built on a portfolio of fifty companies. They were built by someone who identified one wonderful business.

(Courtesy: The Tao of Warren Buffett by Mary Buffett & David Clark)

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More on the Tao of Warren Buffett (Money Mantras….17)

Posted by Muthu on November 12, 2009

Thank you so much for your birthday wishes and positive appreciation for 20 new quotes from the great master, Warren Buffett.

I wish to share some more interesting gems from the master in this article. Source- The Tao of Warren Buffett by Mary Buffett & David Clark.

1) Accounting is the language of business.

2) Anything that can’t go on forever will end.

3) It is not necessary to do extraordinary things to get extraordinary results.

4) The chain of habit are too light to be felt until they are too heavy to be broken.

5) Marrying for money is probably a bad idea under any circumstances, but it is absolutely nuts if you are already rich.

6) Wall Street is the only place that people ride in a Rolls-Royce to get advice from those who take the subway.

7) You should invest like a catholic marries- for life.

8) Never be afraid to ask for too much when selling or too little when buying.

9) It is easier to stay out of trouble than it is to get out of trouble.

10) Managing your career is like investing- the degree of difficulty does not count. So you can save yourself money and pain by getting on the right train.

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