QUOTES FROM LEGENDS

Source	Subject [Variable]	Quotes
Warren Buffett [1983 letter to shareholders]	Retained Earnings	Buffett's $1 Test : "We test the wisdom of retaining earnings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained."
Warren Buffett--- [2013 Letter to Shareholders of Berkshire Hathaway]	90/10 RULE	"My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I've laid out in my will.. My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors - whether pension funds, institutions or individuals - who employ high-fee managers."
Warren Buffett	The two rules to remember	The most important of the Warren Buffett quotes: "Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1."
Warren Buffett	On Inflation	At Berkshire Hathaway's annual meeting on April 30, 2022: "Inflation swindles the bond investor...it swindles the person who keeps their cash under their mattress, it swindles almost everybody," "Inflation... it's extraordinary how much we've seen,"..."For two years the prices have kept coming in higher." "Inflation swindles the equity investor... [Fortune Classics,1977 ] : "The central problem in the stock market is that the return on capital hasn't risen with inflation.""
Warren Buffett	On when to buy shares	"A great investment opportunity occurs when a marvelous business encounters a onetime huge but solvable problem... when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised."
Warren Buffett	On having margin for error	"This is the cornerstone of our investment philosophy. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results."
Warren Buffett	On S&P 500 low-cost index fund	"Consistently buy an S&P 500 low-cost index fund, Keep buying it through thick and thin, and especially through thin."
Warren Buffett	On S&P 500 ETF	"Consistent investments in an S&P 500 ETF are the surest way to secure a million-dollar retirement". His go to index fund (via Berkshire Hathaway's holdings) is the Vanguard S&P 500 ETF."
Warren Buffett	On low-cost index funds:	Buffett has long recommended that investors put their money in low-cost index funds, which hold every stock in an index, making them automatically diversified.
Warren Buffett	On S&P 500 index fund	"I recommend the S&P 500 index fund," Buffett said, which holds 500 of the largest companies in the U.S., "and have for a long, long time to people." Buffett said it's the reason he has instructed the trustee in charge of his estate to invest 90% of his money into the S&P 500, and 10% in treasury bills, for his wife after he dies. "I just think that the best thing to do is buy 90% in S&P 500 index fund."
George Soros	On winning big	"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." - Too many investors become obsessed with being right, even when the gains are small. Winning big and cutting your losses when you're wrong are more important than being right.
Carmen Reinhart	Debt accumulation	If there is one common theme to the vast range of the world's financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom.
Benjamin Franklin	KNOWLEDGE	"An investment in knowledge pays the best interest." -When it comes to investing, nothing will pay off more than educating yourself. Do the necessary research and analysis before making any investment decisions.
Warren Buffett	Acknowledging the vision of past generations	"Someone's sitting in the shade today because someone planted a tree a long time ago."
Warren Buffett	On holding period of a stock	"If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."
Warren Buffett	STOCK PERFORMANCE DEPENDENT ON PERFORMANCE OF BUSINESS	"If a business does well, the stock eventually follows."
Warren Buffett	Underlying business is more important than price at which bought	"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Warren Buffett	Avoid the herd mentality when there is fear and greed	"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Be prepared to invest in a down market and to "get out" in a soaring market, as per the philosophy of
Warren Buffett	Impact of fees on Returns on Investment	-"If returns are going to be 7 or 8 percent and you're paying 1 percent for fees, that makes an enormous difference in how much money you're going to have in retirement."
Warren Buffett	Sources of Income should be more than one	"Never depend on a single income. Make investments to create a second source."
Warren Buffett	Avoid cash equivalents as a long-term asset	"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value."
Jim Rogers	Bottoms end with 10/15 year lows. Be prepared to see your investment sink.	"Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows." - While 10- to 15-year lows are not common, they do happen. During these times, don't be shy about going against the trend and investing; you could make a fortune by making a bold move or lose your shirt. Invest in an industry you've researched thoroughly. Then, be prepared to see your investment sink lower before it turns around and starts to pay off
Carlos Slim Helu	Past and present indicators provide a clear vision	"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future."
Jeff Bezos	Betting for big payoffs even if the chance is 10 percent	"Given a 10% chance of a 100 times payoff, you should take that bet every time."
Warren Buffett	Long -term returns are important and visible	"In the short term, the market is a popularity contest. In the long term, the market is a weighing machine."
John Bogle	Index funds are easier and more reliable	"Don't look for the needle in the haystack. Just buy the haystack!"
Warren Buffett	Modest goals are better	"I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over."
Sir John Templeton	Long-term performance over 5 years is a major key	"The four most dangerous words in investing are, it's different this time."--- Follow market trends and history. Don't speculate that this particular time will be any different. For example, a major key to investing in a specific stock or bond fund is its performance over five years.
Warren Buffett	Bigger bets are better than over-Diversification	"Wide diversification is only required when investors do not understand what they are doing."-- In the beginning, diversification is relevant. However, there are dangers of over-diversifying your portfolio. Once you've gotten your feet wet and have confidence in your investments, you can adjust your portfolio accordingly and make bigger bets.
Robert Arnott	The predominant objective in an investment is profit not comfort	"In investing, what is comfortable is rarely profitable."
Benjamin Graham	Market dominance, size and low debt are important in stock selection	"Each company selected should be large, prominent, and conservatively financed. Indefinite as these adjectives must be, their general sense is clear. Observations on this point are added at the end of the chapter. "
William J O'Neil, McGraw Hill	Momentum Down on its largest weekly volume is a strong sell signal	In some cases, sell if a stock breaks down on the largest weekly volume in its prior five years.
William J O'Neil, McGraw Hill	The lower the shares on issue the better it is	-"If you are choosing between two stocks to buy, one with 10 million shares outstanding and the other with 60 million, the smaller one will usually be the rip-roaring performer if other factors are equal." -"Stocks with a small or reasonable number of shares outstanding will, other things being equal, usually outperform older, large capitalization companies."
William J O'Neil, McGraw Hill	Moving Average Price sell signal	Some stocks can be sold when they are 70% to 100% above their 200-day moving average price line. (MAP decreasing) After a prolonged upswing, if a stock's 200-day moving average line of its price turns into a downtrend, consider selling the stock.
Robert G. Allen	Savings accounts are useful only for an emergency fund, not for investments	"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."-----Though investing in a savings account is a sure bet, your gains will be minimal due to 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.
Warren Buffett	Forecasts should not be taken seriously without checking track record of forecaster	Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.
Warren Buffett	The underlying business is what is important, not the stock market	- "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." - "All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." - "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." - "It is a terrible mistake for investors with long-term horizons -- among them pension funds, college endowments, and savings-minded individuals -- to measure their investment' risk' by their portfolio's ratio of bonds to stocks." - "Successful investing takes time, discipline, and patience. No matter how great the talent or effort, some things just take time: You can't" produce a baby in one month by getting nine women pregnant."
Oliver Kell	Swing-Trading (Short Term investment)	"I am always looking for the strongest growth stocks with big earnings and sales growth and a game-changing story."
Oliver Kell	Swing-Trading (Short Term investment)	"The stock market goes up when there are more buyers than sellers and goes down when there are more sellers than buyers. It's that simple."
Oliver Kell	Swing-Trading (Short Term investment)	"When we see huge volume, it is a sign to pay attention and search for a low risk entry."
Peter Lynch	Buy the right stocks at the right time	"Buy the right stocks at the wrong price at the wrong time and you'll suffer great losses." "Buy the wrong stocks at the right time and you'll suffer more of the same."
Howard Marks	Avoid buying at peaks optimist	"The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge."
Benjamin Graham	When you buy, you buy from a pessimist. When you sell, you sell to an optimist.	"The intelligent investor is a realist who sells to optimists and buys from pessimists."
Warren Buffett	Be prepared for declines of 50% in your stocks	"Unless you can watch your stock holding decline by 50% without becoming panic stricken, you should not be in the stock market."
Benjamin Graham		The argument we made for common stocks in 1949 turned on two main points. The first was that they had offered a considerable degree of protection against the erosion of the investor's dollar caused by inflation, whereas bonds offered no protection at all. The second advantage of common stocks lay in their higher average return to investors over the years. This was produced both by an average dividend income exceeding the yield on good bonds and by an underlying tendency for market value to increase over the years in consequence of the reinvestment of undisturbed profits.
Libby, Libby and Short, Irwin/McGraw-Hill.	Current Ratio	Liquidity refers to a company's ability to meet its current maturing debts. Tests on liquidity focus on the relationship between current assets and current liabilities. They measure the cushion of working capital that is maintained to allow for the unevenness in the flow of funds. For example, a current ratio of 2 means that the company has $2 of current assets for every $1 of current liabilities.
Selena Maranjian	Average Daily Volume of Trading	There are two meanings. With companies, liquidity refers to their cash, as well as assets that can be quickly converted into cash. Companies with high liquidity are less risky, but they might also grow slowly...When you're discussing a stock, liquidity refers to the market's ability to handle a large volume of trading without significant price swings.
Selena Maranjian	Days Untraded	It's good to pay attention to this number with smaller companies, as stocks with small floats (Referred to as "thinly traded") can be extra volatile. Any demand will send the stock price soaring, as supply is so limited, and vice versa.
How to Make Money in Stocks by William J. O'Neil, McGraw Hill. ( Pg 33}	Days Untraded	Lower-priced stocks with thin (small) capitalization and no institutional sponsorship or ownership should be avoided, since they have poor liquidity and a lower-grade following.
Warren Buffett	Integrity	-"In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you." - "If a new hire doesn't have integrity, you'd better hope they're 'dumb and lazy,' according to Warren Buffett."
Warren Buffett	Reputations	"It takes 20 years to build a reputation and five minuted to ruin it. If you think about that you'll do things differently."
Warren Buffett	Focusing on the fundamentals	"Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard."
Warren Buffett	Investing	"I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy."
Warren Buffett	Opportunity	"Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble"
Warren Buffett	Investing	"Investors should be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms such as beta, gamma, sigma and the like, these models tend to look impressive. Too often, though, investors forget to examine the assumptions behind the models. Beware of geeks bearing formulas. "
Warren Buffett	Saving Money	"Do not save what is left after spending; instead spend what is left after saving."
Warren Buffett	Owning Stock	"If you aren't thinking about owning a stock for ten years, don't even think about owning it for ten minutes."
Warren Buffett	Diversification	"Diversification is protection against ignorance. It makes little sense if you know what you are doing."
Warren Buffett	Investing in Stock Market	"So smile when you read a headline that says "Investors lose as market falls." Edit it in your mind to "Disinvestors lose as market falls-but investors gain." Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other. (As they say in golf matches: "Every putt makes someone happy.")"
Warren Buffett	A low purchase price is critical for success in an investment	"We need a moderately-priced stock market... The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments."
Warren Buffett	Buy only what you need	"If you buy things you do not need, soon you will have to sell things you need."
Benjamin Graham	Long-term success in stocks is visible	"In the short run, the market is a voting machine but in the long run, it is a weighing machine."
Benjamin Graham	Investing in stock	"Invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price."
Benjamin Graham	Thorough analysis is important in stock selection	"you must thoroughly analyze a company, and the soundness of its underlying businesses, before you buy its stock; you must deliberately protect yourself against serious losses; you must aspire to "adequate," not extraordinary, performance."
Benjamin Graham	Stock is an Ownership interest	"A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price."
Benjamin Graham	Price is critical when buying & selling a Stock	"Buy cheap and sell dear."
Slav Fedorov	Low Volume	Low-volume stocks may express trading volatility, market uncertainty... "Low volume means few investors are putting only a little money at risk. You cannot trust such price moves, as they are fickle and can easily reverse. "
Gautam Adani	Relentlessly	"First, dream relentlessly. Second, learn relentlessly. And third, build relentlessly."
Gautam Adani	Dreams	"Dreams are not the privilege of the rich. They are the reward of those who dare to believe and work tirelessly."... "The future belongs to those who dream boldly today".... "Your dreams and your learnings hold meaning only when they build something larger than yourself."...
Gautam Adani	Failure	"Failure is not the opposite of success-it is the most important companion to success."
Gautam Adani	Personal gains	"Envision a world where your actions uplift others, where your knowledge empowers those less fortunate, and where your influence inspires change."