No article about stock market myths is complete without at least an allusion to Warren Buffet. The actual quote referenced in the article is "We've long felt that the only value of stock forecasters is to make fortune tellers look good". Other gems:
- A girl in a convertible is worth five in the phonebook.
- Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation.
- I've reluctantly discarded the notion of my continuing to manage the portfolio after my death – abandoning my hope to give new meaning to the term 'thinking outside the box.'
- If you understand the business, you don't need to own very many of them. If you have a harem of 40 women, you never get to know any of them very well.
- I'll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty.
And, perhaps his most memorable advice:
- 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 when others are fearful.