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Your best investing maxim?
Old 06-17-2010, 08:01 PM   #1
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Your best investing maxim?

Just wondering what single investing maxim, if any, has helped you most over the years? I find that a good maxim can act like a mantra and sustain me in tough times.

My #1 is from Warren Buffet, though I can only paraphrase it, since I forgot where I read it and can't find it on the Internet:

Quote:
The stock market is like an evil tutor, trying to teach you trade badly.
I'd love to hear yours, if you have one.
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Old 06-17-2010, 08:21 PM   #2
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I have two:

1. Always sell your losers before they go long term.

2. Always buy equities on a one-day dip that is one of the worst days in the last 3 to 6 months.

But your questions also implies that current times are tough. The stock market is up for the year, some things are up more than 10%. Times are very good.
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Old 06-17-2010, 09:03 PM   #3
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Old 06-17-2010, 09:54 PM   #4
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Like LOL I'll throw 2 out there:

1) Stay the course

2) The most expensive words in investing: "This time it's different"

DD
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Old 06-17-2010, 10:13 PM   #5
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If you are not worried then you are not risking enough - Max Gunther

Only the little people pay taxes - Leona Helmsley
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Old 06-17-2010, 10:33 PM   #6
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“Be fearful when others are greedy and greedy when others are fearful” - Warren Buffett

Of course I could not heed that advice 100%, but just remembering that has kept me from going 100% to cash at market bottom and 100% equities at market top.
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Old 06-17-2010, 10:41 PM   #7
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Okay, I'll make one up: Just do it. (That is, get that cash into the market).
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Old 06-17-2010, 10:59 PM   #8
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Only the little people pay taxes - Leona Helmsley
Was she married to Carl-Henric Svanberg?
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Old 06-18-2010, 02:44 AM   #9
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Surprised I haven't seen this chestnut here yet: "Pay yourself first."
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Old 06-18-2010, 04:08 AM   #10
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In short run the market is a voting mechanism in the long run it is a weighing mechanism.

The market can remain irrational longer than you can remain solvent.
Useful for times when you short stocks.
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Old 06-18-2010, 05:16 AM   #11
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Surprised I haven't seen this chestnut here yet: "Pay yourself first."
My father always said this and I finally listened before it was too late.

Cheers!
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Old 06-18-2010, 06:12 AM   #12
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If you wouldn't buy it at today's price, you should sell it at today's price.
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Old 06-18-2010, 06:12 AM   #13
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Don't invest in anything you can't explain to an intelligent 12 year old.
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Old 06-18-2010, 06:38 AM   #14
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My 93 year-old aunt likes to say that the bulls and the bears make money on Wall Street but the pigs never do. She still buys individual stocks after much study.
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Old 06-18-2010, 06:43 AM   #15
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Sheep get sheared;
Pigs get fat;
Hogs get slaughtered.
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Old 06-18-2010, 06:44 AM   #16
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I like, "When you're ready to diddle with your portfolio, don't".
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Old 06-18-2010, 06:45 AM   #17
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Quote:
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I like, "When you're ready to diddle with your portfolio, don't".
. . . or you'll go blind.
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Old 06-18-2010, 07:06 AM   #18
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Quote:
Originally Posted by CuppaJoe View Post
Okay, I'll make one up: Just do it. (That is, get that cash into the market).
Isn't that the same as "Buy, buy, buy"?

Quote:
Originally Posted by Gumby View Post
Don't invest in anything you can't explain to an intelligent 12 year old.
"A child of five would understand this. Send someone to fetch a child of five." — Groucho Marx

Soo, you can't explain CDO and CDS to a 12 year old?

Of course, the above toxic assets, or financial weapons of mass destruction as Buffett called them, are truly advantageous to the people who deploy sell them, and not the buyers.

Oops, forgot that they also "got high on their own supply", were OD'ed and needed public funding for resuscitation.
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Old 06-18-2010, 07:19 AM   #19
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Buy low, sell high.
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Old 06-18-2010, 08:16 AM   #20
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Quote:
Originally Posted by wishin&hopin View Post
Surprised I haven't seen this chestnut here yet: "Pay yourself first."
+1

And it's corollary: You can't control the market, but you can control your spending...
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