I really love reading the following quotes from time to time to focus on what’s important in the investing path to financial freedom.
- “An investment in knowledge pays the best interest.” – Benjamin Franklin
When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research, study and analysis before making any investment decisions.
- “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett
- “The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Phillip Fisher
Another testament to the fact that investing without an education and research will ultimately lead to regrettable investment decisions. Research is much more than just listening to popular opinion.
- “In investing, what is comfortable is rarely profitable.” – Robert Arnott
At times, you will have to step out of your comfort zone to realize significant gains. Know the boundaries of your comfort zone and practice stepping out of it in small doses. As much as you need to know the market, you need to know yourself too. Can you handle staying in when everyone else is jumping ship? Or getting out during the biggest rally of the century? There’s no room for pride in this kind of self-analysis. The best investment strategy can turn into the worst if you don’t have the stomach to see it through.
- “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen
Though investing in a savings account is a sure bet, your gains will be minimal given the extremely low interest rates. But don’t forgo one completely. A savings account is a reliable place for an emergency fund, whereas a market investment is not.