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Thursday, October 8, 2015

Investment and Life Lessons - Part 4

Here's the part 4 of my previous posts regarding the lessons/quotes I've encountered in my various readings on business, stocks, economy, money, war and life. My list is getting too long again hence I'm sharing it with the Filipino Investors out there for them to learn a thing or two. Cheers!

  1. There's more to see than can ever be seen. More to do than can ever be done. More to find than can ever be found. - The Lion King
  2. Look out for yourself - Jerome Montino
  3. Give love away - WB
  4. Sometimes one pays most for the things one gets for nothing. - Albert Einstein
  5. A stock does not become attractive simply because it has come to your attention
  6. These findings reveal an axiomatic truth about investing: investors aren’t rewarded for picking winners; they’re rewarded for uncovering mispricings— divergences between the price of a security and its intrinsic value. It is mispricings that create market-beating opportunities. And the place to look for mispricings is in a disaster, among the unloved, the ignored, the neglected, the shunned, and the feared— the losers
  7. Though it is ubiquitous, we don’t intuitively recognize the conditions for mean reversion . Time and again investors, including value investors , ignore it and consequently reduce returns. We can show that a portfolio of deeply undervalued stocks will, on average, generate better returns, and suffer fewer down years, than the market. But rather than focus on the experience of the class of deeply undervalued stocks, we are distracted by the headlines. We overreact . We’re focus on the short-term impact of the crisis. We fixate on the fact that any individual stock appears more likely to suffer a permanent loss of capital. The reason is that even those of us who identify as value investors suffer from cognitive biases, and make behavioral errors. They are easy to make because the incorrect decision— rejecting the undervalued stock— feels right, while the correct decision— buying stocks with anemic, declining earnings— feels wrong
  8. Stockholders seemed to have forgotten that they are owners of a business and not merely owners of a quotation on the stock ticker - Ben Graham
  9. In a difficult business, no sooner is one problem solved than another surfaces— never is there just one cockroach in the kitchen - Warren Buffet
  10. Are stocks pieces of paper to be endlessly traded back and forth, or are they proportional interests in underlying businesses? A liquidation settles this debate, distributing to owners of pieces of paper the actual cash proceeds resulting from the sale of corporate assets to the highest bidder. A liquidation thereby acts as a tether to reality for the stock market, forcing either undervalued or overvalued share prices to move into line with actual underlying value - Ben Graham
  11. The analyst should be concerned primarily with values that are supported by facts and not with those that depend on expectations. This differentiated the security analyst from the speculator, whose success turned on his or her ability to guess the future, where the analyst sought not to profit from the future , but to guard against it - Ben Graham
  12. First-class businesses resist mean reversion
  13. When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact. - WB
  14. Let me have men about me that are fat, sleek-headed men and such a sleep a-nights. Yond Cassius has a lean and hungry look, He thinks too much; such men are dangerous. - Caesar
  15. Any player who's unaware of the fool in the market is probably the fool in the market - Warren Buffet
  16. We have not been given the lead in the cosmic drama - Carl Sagan
  17. We have good reason for humility - Carl Sagan
  18. Silence is golden when you can't think of a good answer - Muhammad Ali
  19. (Carl Icahn) He’ll buy at the worst possible moment, when there’s no reason to see a sunny side and no one agrees with him
  20. My whole history if you look at it, is not to buy businesses that are great. I don’t pay retail. I go in when people say they’re terrible. It’s really the old Graham-and-Dodd philosophy. You go in when nobody likes it, but it’s still ok. . . . A lot of analysts miss this stuff - Carl Icahn
  21. The consensus thinking is generally wrong. If you go with a trend, the momentum always falls apart on you. So I buy companies that are not glamorous and usually out of favor. It’s even better if the whole industry is out of favor - Carl Icahn
  22. (You have to) Got the goods - Rommel Mampusti
  23. Those who say don't know and those who know don't say
  24. I found the road to wealth when I decided that a part of what I earn is mine to keep - Algamish
  25. Wealth, like a tree, grows from a tiny seed - Algamish
  26. Many shall be restored that are now fallen and many shall fall that are now in honor. - Horace
  27. And a man, a man provides. And he does it even when he's not appreciated, or respected, or even loved. He simply bears up and he does it. Because he's a man.
  28. The stock market is filled with people who know the price of everything but the value of nothing - Phillip Fisher
  29. It takes twenty years to make an overnight success - Eddie Cantor
  30. In the end, you regret the shots you did not take
  31. Stop and smell the roses - David Kong
  32. Take the job that you would take if you were independently wealthy - W.Buffet
  33. I'm no genius but I'm smart on spots and I try to stay around those spots - W.Buffet
  34. Keep your dream alive - Jack Ma
  35. Anyone who struggled hard on a problem never forgets it - Elon Musk
  36. I've been rejected but I'm still in love - Steve Jobs
  37. It's always darkest before the dawn
  38. Fools make feasts and wise men, eat them - B. Franklin
  39. A small hole sank the ship - B. Franklin
  40. Use these hard times to make a man of yourself - Charlie Munger
  41. If you are capable of understanding the world, you have a moral obligation to become rational - Charlie Munger
  42. Real opportunities that come to you are a few, and when you find one my dear grandchildren, seize it boldly and don't do it small - Charlie Munger's great grandfather
  43. I think part of enjoying life is to just see it as it is, face it as it is and adapt to the reality as it is whether you like it or not - Charlie Munger
  44. The used key is always bright - Benjamin Franklin
  45. Nothing is ever sure John, that's the only sure thing I know - John Nash's room mate
  46. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest - Adam Smith
  47. Don't waste today worrying about tomorrow
  48. Part of the joy of having a list is checking it out - Jim Rohn
  49. When you've accomplished something major - celebrate - J.R.
  50. Spend 5 mins complaining and you've wasted 5 - J.R.
  51. I'll tell you how risky life is, you're not gonna get out alive - J.R.
  52. We've embraced the 21st century by entering in such cutting edge industries such as brick, carpet, insulation and paint - Warren Buffett
  53. Big opportunities in life have to be seized - W. B.
  54. Look after the pennies and the pounds will look after themselves - Andrew Carnegie's mother
  55. We must be happy with what we've got when we are in pursuit of what we want - Ben Franklin
  56. You'd be as happy as you make up your mind to be - Abraham Lincoln
  57. Successful people have libraries. The rest have big screen TVs. - Jim Rohn
  58. Life is not just the passing of time. Life is a collection of experiences, their intensity, their frequency. - Jim Rohn
  59. Your only limitation is the one you are willing to accept in your own mind - Napoleon Hill
  60. Love is the bridge between you and everything
  61. Find what you love and let it consume you
  62. You have to be self motivated and you have to be able to take a lot of rejection. You have to be able to enjoy rejection until rejection becomes so wonderful that you just can't wait to get another rejection so that you can get back to the grindstone so you can get more rejection.
  63. The understanding of self worth is the beginning of progress - Jim Rohn
  64. It's all risky, the minute you were born it got risky. If you think trying is risky wait till they hand you the bill for not trying. If you think investing is risky, wait till they give you the tab for not investing - Jim Rohn
  65. It's not what happens, it's what you do. What happens, happens to all of us, what you do makes it difference - J.R.
  66. Asking is the beginning of receiving - J.R.
  67. I will
  68. Resolve means promising yourself you will never give up
  69. Testing the limits of the human spirit - Walter Mitty
  70. To see the world, things dangerous to come to, to see behind walls, to draw closer, to find each other and to feel. That is the purpose of life.
  71. Don't be obsessed be enticed - J.R.
  72. Possession starts first in the mind - Napoleon Hill
  73. Demand don't beg - N.H.
  74. Wealth, like happiness, is never attained when sought after directly. It comes as a by-product of providing a useful service. - Henry Ford
  75. A market is never saturated with a good product, but it is quickly saturated with a bad one. - Henry Ford
  76. Most people get ahead during the time that others waste - Henry Ford
  77. While the individual man is an insoluble puzzle, in the aggregate he becomes a mathematical certainty - W.W. Reade
  78. The future does not get better on hope. It gets better by plan and taking action - J.R.
  79. What shall I do? Well for progress sake, you must decide. - J.R.
  80. Formula for failure - few/small errors of judgement repeated every day - J.R.
  81. Formula for success - a few/small simple disciplines practiced everyday - J.R.
  82. Every home worth over $100K (PHP4.7M) has a library
  83. The greatest source of unhappiness is self-unhappiness - J.R.
  84. Successful people in every field are almost universally members of a certain set— the set of people who don’t give up.
  85. There are no traffic jams along the extra mile - Roger Staubach
  86. When you want something, all the universe conspire to help you achieve it - Old King
  87. Maktub - it is written
  88. If you can concentrate always in the present you'll be a happy man
  89. Money is a terrible master but an excellent servant - P. T. Barnum
  90. By desiring little, a poor man makes himself rich - Democritus
  91. The unexamined life is not worth living - Socrates
  92. Categorically, the most important part of life is pleasure - Epicurus
  93. Goods associated w/ happiness: having friends, living self-sufficient, living an analyzed life
  94. Our anxiety is disproportionate on what there is to worry about - Epicurus
  95. Anxiety is what occurs on the mind when certain problems have not been approached rationally and calmly - Epicurus
  96. You move forward by doing what you can do in your current environment - Wallace Wattles
  97. The application of a sufficient cause cannot fail to produce a given effect (success) - W.W
  98. If there is a failure anywhere of any kind it is because the cause is not sufficient or is not properly applied - W.W
  99. Have nothing in your house that you believe to be useful or beautiful - William Morris
  100. Definition of news: Facts a few people have long known that are now exposed to the public
  101. One is loved because one is loved, there is no reason needed for loving - Fatima
  102. You have no other day but today - Gino Lisondra
  103. A man can fail many times, but he isn't a failure until he begins to blame somebody else
  104. Everything is worth what people are ready to pay - Luxottica CEO
  105. Money has no loyalty, despite patriotic pledges of corporate allegiance. Like water, cash will flow out, not to the lowest level like any liquid, but to where the highest returns lie
  106. The stock market is the only market where things go on sale and all the customers run out of the store - Cullen Roche
  107. It's nice to be important but it's more important to be nice - John Templeton
  108. It is wrong to assume that men of immense wealth are always happy - JDR
  109. Sex is part of nature, I go along with nature - Marilyn Monroe
  110. If I'd observed all the rules, I'd never got anywhere - Marilyn Monroe
  111. Let us never negotiate out of fear, But let us never fear to negotiate - John F. Kennedy
  112. Forgive your enemies but never forget their names - JFK
  113. Change is the law of life, and those who look only to the past or present are certain to miss the future - JFK
  114. The most wasted day is that in which we have not laughed - Sebastian-Roch Nicolas
  115. Pareto Principle/Analysis - 80/20 rule - the critical few vs the trivial many
  116. Worry is the wrong use of imagination
  117. We have met the enemy, and it is us
  118. Market models and theories of investment are often based on mathematical convenience rather than empirical evidence - hence, watch out
  119. The only thing to fear is fear itself
  120. Equal dissemination of knowledge does not imply equal use of knowledge. - Jack Schwager
  121. More money has been lost through the mismeasurement of risk than by the failure to measure risk. It would be safer to drive a car without a speedometer than a speedometer that understated true speeds by 25 percent. If you had no mechanical gauge of speed, you would be conscious of that absence of information and take extra caution as a result. If, instead, you are relying on a speedometer you believe is providing correct readings but , in fact, is significantly understating actual speed, you will be more prone to an accident.
  122. Don't trust your memory - if you have a good idea, write down, ponder upon and perhaps go ahead and do it.
  123. Civilization is the intelligent management of human emotions - JR
  124. The major key to your better future is you - JR
  125. Life is known as the big IF
  126. You may not be able to do what you find out but you have to find out what you can do
  127. 4 ways to become a child, a. curiosity, b. excitement, c. faith, d. trust
  128. You make your choices and then your choices make you - Sir Darren Hardy
  129. Before borrowing money from a friend, decide which you need most.
    ~American Proverb
  130. Don't lend money to a friend, you will lose both.
    ~English Proverb
  131. The right to be heard does not include the right to be taken seriously - Hubert Humphrey
  132. The risk is not in our stocks but in ourselves - Ben Graham
  133. A closed mind is a dying mind - Edna Ferber
  134. “Our greatest misfortune as a people is having leaders and prominent individuals who divide this country into groups represented by colors, ethnicity and religious beliefs.”...“We should be like a rainbow, a country of diverse colors but united and bound by the common desire of becoming a beautiful spectacle in the sky.” - Rodrigo Duterte
  135. Time changes everything, that's what people say. It's not true. Doing things changes things. Not doing things leaves things exactly as they were. - Dr. House
  136. If time be of all things the most precious, then wasting time must be the greatest prodigality - Benjamin Franklin
  137. Sloth makes all things difficult but industry, all easy - Ben Franklin
  138. By diligence and patience the mouse ate into the cable - Ben Franklin
  139. A fat kitchen makes a lean will - Ben Franklin
  140. Ganito nalang ba tayo? Kalaban ang kaaway. Kalaban ang kakampi? - Heneral Luna
  141. You expect that they (the goods) will be sold cheap, and perhaps they may for less than they cost. But if you have no occasion for them, they must be dear to you. - Ben Franklin
  142. Buy what thou hast no need of and heir long thou shalt sell thy necessaries - Ben Franklin
  143. The second vice is lying the first is running in debt
  144. Get what you can and what you get hold, this will turn all your lead into gold - Ben Franklin
  145. Tell me I can't, and I'll work twice as hard to prove you wrong
  146. When you kiss her mind, her body will follow
  147. A good laugh and a long sleep are the two best cures for anything
  148. To achieve the impossible, it is precisely the unthinkable that must be thought - Tom Robbins
  149. Risk more than is required. Learn more than is normal. - Robin Sharma
  150. "Let's go somewhere."
"I got a full tank of gas. Let's get out of here."
"All right."

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