Lessons From the World’s Best Investors

Would you rather learn from the world’s most experienced and knowledgeable investors or would you rather make all the successes and failures on your own?  Here are quotes from investors who have been there, done that, and may have even written a book about it.  There are also some great lessons to be learnt and takeaways for you, whether you are a big investor or small investor.  First, test your knowledge of the famous investment quotes and important takeaways.

1.    "It's not how much money you make, but how much money you    ____ (give away /keep /spend), how hard it works for you, and how many ___________(generations/months/years) you keep it for." -Robert Kiyosaki                
(ANSWER:  a) KEEP   b) GENERATIONS)

LESSON: Keeping wealth for the next generation gives them a jump start.  It can be as simple as opening your stock account with your child or grandchild, or willing the stocks to them.  Another option is to name your loved one as the beneficiary on your life insurance policy.  JMMB Investments and JMMB Insurance Brokers can help you with the respectively options.
 

2.    “90 % of the people in the stock market, professionals and amateurs alike, simply haven’t done enough ____________ (investments / homework / self-evaluation).” -William J. O’Neil.                  
(ANSWER:  HOME WORK)

LESSON: Doing your ‘homework’ as an investor involves doing research to determine whether companies are fairly priced and determining whether the stock matches your investment strategy.  JMMB can help you in two ways: 1) create an investment strategy appropriate for your financial goals by visiting any of our branches for your FREE Goal Planning Session (GPS) to get started in doing your ‘homework.’; and 2) providing investment research on our website at www.jmmb.com/research-articles for stock picks and other market information. 
 

3.    "I will tell you how to become rich. . .  Be ________(fearful/excited/greedy) when others are greedy. Be ____________  (greedy /fearful/ excited) when others are fearful." - Warren Buffett                   
(ANSWER:  a) FEARFUL    b) GREEDY)

LESSON: Investors who invest in good under-priced stocks, reap the best benefit. However, if you are ‘running in’ with, or after the crowd, you may purchase at too high a price for you to make an attractive gain.
 

4.    "Know what you own, and know ________________(how/ why/when) you own it." - Peter Lynch     
(ANSWER:  WHY)

LESSON:  Every stock should have a purpose in your portfolio.  Did you purchase the stock for its projected appreciation, high dividend pay-out policy, to create a balance with stocks from other industries or for some other reason?  If you know “why” you purchased it, you can evaluate the stock and determine whether to buy more, sell or hold. This prevents you from falling prey to simply ‘following the crowd.’
 

5.    “Only buy something that you’d be perfectly happy to hold if the market shut down for ___________(a short time/ 2 years /10 years).” -Warren Buffett           
(ANSWER: 10 years)   

LESSON: When purchasing stocks, it is best to purchase with a long-term timeline.  There may be an opportunity to sell before 10 years, but it is not a guarantee, so please choose carefully the stocks you want to include in your portfolio, and know your rationale for including these.

Armed with this new information, would you like to invest in the stock market with the assistance of experts?  Please give us a call at (1 876) 998-5662 to get started.