In the fast-paced investing world, some kernels of timeless wisdom are valid regardless of whether the market is soaring or sinking. Quotes from legends like Warren Buffett, Benjamin Franklin, and John Bogle offer insights to help investors stay grounded through various market cycles and news events that can drive panic-selling. Here are 10 money quotes that inspire investors, keeping them on track whether the market is driven higher by AI stock euphoria or heading south on a bout of pessimism.
Funny Money Quotes
“The buyer needs a thousand eyes, the seller not one!”
- George Herbert (1593-1633), English poet.
This humorous observation from George Herbert remains relevant today. Ed Mahaffy, co-founder and senior portfolio manager at Fiduciary Wealth Management, explains that the principle of ‘caveat emptor’ (buyer beware) still holds true, regardless of the era or the item being purchased, whether it’s a horse, a used car, or a security.
“The miracle of compounding returns has been overwhelmed by the tyranny of compounding costs.”
- John C. Bogle (1929-2019), founder of the Vanguard Group.
John Bogle, a pioneer of low-cost index investing, highlighted the powerful growth potential of compound returns, while also cautioning about the significant costs associated with many active management approaches. Ed Mahaffy notes the irony in Bogle’s statement, emphasizing how the costs of money management can sometimes outweigh the benefits of compounding.
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
- Warren Buffett (1930-present), CEO of Berkshire Hathaway Inc.
Chris Corinthian, founder of FinLit University, appreciates this quote for its reminder that true wealth is built by having your money work harder for you than you work for it. Investing in income-producing assets is crucial for long-term financial success.
Making Money Quotes
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”
- Albert Einstein (1879-1955), German physicist.
Often attributed to Einstein, this quote underscores the exponential growth potential of compound interest. Ray Prospero of AdvicePeriod highlights how reinvesting earned interest allows investments to grow significantly over time, demonstrating the power of time and the impact of interest on wealth accumulation.
“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.”
- Peter Lynch (1944-present), former manager of the Magellan Fund at Fidelity Investments.
Peter Lynch’s success was rooted in a common-sense understanding of business, rather than complex financial theories. Asher Rogovy, chief investment officer at Magnifina, points out that Lynch valued factors like customer satisfaction and expansion plans over short-term financial forecasts, offering a practical approach for beating the market.
“Diversification is the only free lunch in investing.”
- Harry Markowitz (1927-2023), American economist.
Markowitz, known for his emphasis on portfolio diversification, argued that maintaining a diversified portfolio is a simple and effective strategy for managing risk. Ed Mahaffy asserts that diversification remains a key principle for successful investing, despite various sophisticated strategies available.
Inspirational Money Quotes
“The one who plants trees knowing that he or she will never sit in their shade, has at least started to understand the meaning of life.”
- Rabindranath Tagore (1861-1941), Bengali poet.
Annie Cole, founder of Money Essentials for Women, relates this quote to financial planning, emphasizing the importance of long-term thinking. Investing and budgeting today can lead to significant rewards in the future, mirroring the patience and foresight of planting trees for future generations.
“The future is purchased by the present.”
- Samuel Johnson (1709-1784), English writer.
Ed Mahaffy explains that this quote highlights the importance of making sacrifices today to achieve future goals. It reinforces the idea that present actions have a profound impact on future outcomes.
“The 80/20 principle asserts that a minority of causes, inputs or efforts usually lead to a majority of the results, outputs or rewards.”
- Richard Koch (1950-present), British venture capitalist.
Richard Koch’s principle suggests that focusing on a few key actions can lead to significant results. Annie Cole provides practical advice, noting that major financial decisions, like career changes or managing large expenses, can have a more substantial impact than minor adjustments.
“Don’t put off until tomorrow what you can do today.”
- Benjamin Franklin (1706-1790), American statesman.
This quote, often referenced in finance, underscores the value of acting promptly to maximize financial gains. Annie Cole advocates for taking action even when not fully prepared, as waiting for perfect conditions can lead to missed opportunities.