Charles Dow Quotes

Who on Earth is Charles Dow?

Charles Henry Dow was an American journalist who co-founded Dow Jones & Company with Edward Jones and Charles Bergstresser.

Dow also co-founded The Wall Street Journal, which has become one of the most respected financial publications in the world.

Ultimately he is best known for inventing the Dow Jones Industrial Average as part of his research into market movements.

Born November 06, 1851
Died December 04, 1902

Books by Charles Dow


Best 51 Quotes by Charles Dow

“A stock operator should not deal in stocks unless he thinks he knows their value.”

Charles Dow

“An investor who will study values and market conditions, and then exercise enough patience for six men will likely make money in stocks.”

Charles Dow

“Any man who claims to know what the market is going to do any more than to say that he thinks this or that will occur as a result of certain specified conditions is unworthy of trust as a broker.”

Charles Dow

“Bull markets and bear markets run four and five years at a time.”

Charles Dow

“Buy stocks for investment; that is, to pay for them outright when they are selling below value and wait until they are up to value, getting the difference for a profit.”

Charles Dow

“Great opportunities do not come every year…”

Charles Dow

“Have money enough to see a decline through without becoming uneasy or over-burdened.”

Charles Dow

“How many operators in looking over their books find a considerable number of small profits swept away by one large loss?”

Charles Dow

“If a stock advances ten points, it is very likely to have a relapse of four points or more.”

Charles Dow

“If people with either large or small capital would look upon trading in stocks as an attempt to get 12 percent per annum on their money instead of 50 percent weekly, they would come out a good deal better in the long run.”

Charles Dow

“If there were no exceptions, the keepers of bucket shops would all get rich.”

Charles Dow

“In a bull market it is better to always work on the bull side; in a bear market, on the bear side.”

Charles Dow

“In most bull markets there comes a time when the public controls fluctuations and the efforts of the largest operators are insufficient to check the rising tide.”

Charles Dow

“In the long run, the prices of stocks adjust themselves to the return on the investment.”

Charles Dow

“It is always safer to assume that values determine prices in the long run. Values have nothing to do with current fluctuations. A worthless stock can go up 5 points just as easily as the best, but as a result of continuous fluctuations the good stock will gradually work up to its investment value.”

Charles Dow

“It is one thing to will and another to do in stock speculation.”

Charles Dow

“Many people seem to think that if an operator is in Wall Street, he can tell what the market is going to do. Nothing is further from the fact.”

Charles Dow

“Money is made by conservative trading rather than by the effort to get large profits by taking large risks.”

Charles Dow

“Most people however, when they talk about making money in stocks do not mean the slow road through investments, but the short cut by way of speculation.”

Charles Dow

“Nobody can hope to buy at the bottom or to sell at the top…”

Charles Dow

“People in Wall Street, even those who get very near the center of large operations, do not know what the market is going to do with any regularity or certainty.”

Charles Dow

Products by Charles Dow

“Pride of opinion has been responsible for the downfall of more men on Wall Street than any other factor.”

Charles Dow

“Profits and losses run in streaks.”

Charles Dow

“Speculation is not at its best a simple and easy road to wealth, but speculation through people who advertise guaranteed profits and who call for participation in blind pools is as certain a method of loss as could possibly be discovered.”

Charles Dow

“Stick to the stock bought until a fair profit or until there is good reason for deciding that the first estimate of value was wrong.”

Charles Dow

“Stocks fluctuate together, but prices are controlled by values in the long run.”

Charles Dow

“Stop orders should not be given in inactive stocks, as the seller may be slaughtered in their execution.”

Charles Dow

“The best profits in the stock market are made by people who get long or short at extremes and stay for months or years before they take their profit.”

Charles Dow

“The business community has a tendency to go from one extreme to the other.”

Charles Dow

“The buyer of any stock has some reason for his action. He has heard that the stock is going up; he believes that it is selling below its value, he sees that a bull market is under way and believes that this stock will go up as much as any other. These and similar reasons lead to buying.”

Charles Dow

“The great fortunes in stocks have not usually been made by people who give stop loss orders.”

Charles Dow

“The man who begins to speculate in stocks with the intention of making a fortune usually goes broke, whereas the man who trades with a view of getting good interest on his money sometimes gets rich.”

Charles Dow

“The maxim ‘buy cheap and sell dear’ is as old as speculation itself, but leaves unsolved the question of when a security or a commodity is cheap and when it is dear, and this is the vital point.”

Charles Dow

“The maxim ‘let your profits run, but cut your losses short’ has received the approval of most of the great stock operators. The authorship of the maxim has been credit to a dozen people, and most of them would have been willing to father it…”

Charles Dow

“The more they actually know, the less confident they become.”

Charles Dow

“The one fact pertaining to all conditions is that they will change.”

Charles Dow

“The operator should take in a great stock of patience. He will see other stocks go up and his stock stand still. He will see and hear daily that something else is making riches for traders, but he must shut his ears to these statements, even if they are right as far as fluctuations go. He must just sit on his stock, which is intrinsically below its value, until other people observe that it is selling too low and begin to buy it.”

Charles Dow

“The outside trader should not attempt to deal in more than two or three stocks at a time.”

Charles Dow

“The present is always tending toward the future and there are always in existing conditions signals of danger or encouragement for those who read with care.”

Charles Dow

“The public as a whole does not like short selling.”

Charles Dow

“The public, as a whole, buys at the wrong time and sells at the wrong time. The average operator, when he sees two or three points profit, takes it; but, if a stock goes against him two or three points, he holds on waiting for the price to recover, with oftentimes, the result of seeing a loss of two or three points run into a loss of ten points.”

Charles Dow

“The stop order is the friend of the active speculator, who wants to make a quick dash for a large profit and who is willing to make small losses in the hope of getting a good run once in four or five attempts.”

Charles Dow

Products by Charles Dow

“The tendency with most people holding a stock which does not move for a time is to sell the stock about as soon as it begins to move, through fear that it will again become dull. This is just the time not to sell, but if anything, to buy more on the idea that other people have discovered that the price is below value.”

Charles Dow

“There are usually more rallies in a bear market than there are relapses in a bull market.”

Charles Dow

“This rule… to cut losses short but let profits run. It sounds very easy to follow, but is in reality difficult to observe.”

Charles Dow

“To know values is to know the meaning of the market.”

Charles Dow

“To know values is to know the meaning of the market. And values, when applied to stocks, are determined in the end by the dividend yield.”

Charles Dow

“Value is determined by the margin of safety over dividends, the size and tendency or earnings; the soundness of the balance sheet and of operating methods, and general prospects for the future. This sounds rather complicated, but is not especially difficult to work out.”

Charles Dow

“Value will always work out in the course of time.”

Charles Dow

“Values are determined roughly by the earnings available for dividends.”

Charles Dow

“When the price of a stock declines considerably, the small operator always fears that he has overlooked something of importance, and he is therefore tempted to sell instead of averaging his holdings.”

Charles Dow