Jason Zweig Quotes

“If you buy-and then hold-a total stock market index fund, it is mathematically certain that you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett.”

“Obviously you’re never going to just work out without conscious thought. But like a dog salivating at a bell, maybe you start to get antsy around the time of day you normally work out.”

“The alluring, long-shot chance of a huge gain is the grease that lubricates the machine of innovation.”

“Think of Munger and Miller and Buffett: guys who just won’t spend a minute of time or an iota of mental energy doing or thinking about anything that doesn’t make them better.

Their skill is self-honesty. They don’t lie to themselves about what they are and aren’t good at.

Being honest with yourself like that has to be part of the secret. It’s so hard and so painful to do, but so important.”

“Every profession is a conspiracy against the laity, and every profession’s jargon is meant to confuse and exclude those who aren’t part of the guild.”

“The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists.”

“That’s why one of my favorite investing rules is 'If the market is open, your wallet should be closed.' You should never act on an investing idea the same day you get it; the next day, your mood and situation will have changed, and the facts may look different to you. Sleeping on it is one of the simplest and best ways to make sure your decision is not just a momentary whim.”

“A stock is not cheap or expensive merely because its price is below or above a particular number. It is cheap or expensive only in relation to the fundamental value of the underlying business, which has nothing to do with whether the share price is near an anchor. If you find yourself getting excited over any investment based purely on its price, you’re anchoring.”

“If the market is open, your wallet should be closed.”

“The risk you are likely to be rewarded for taking is the risk of owning all stocks. In effect, rather than betting on one roll of the dice, one spin at the roulette wheel, or a single hand at the blackjack table, you can own the whole casino. You can do this effortlessly, cheaply, and reliably by buying a total stock-market index fund, a low-cost portfolio of all the stocks worth owning.”

“What history does prove is that how risky stocks seem, and how risky they actually are, are inversely correlated.”

“When you invest, your mind has a mind of its own. At the very moment when you are most convinced of your own rationality, you may be feeling rather than thinking your way toward a decision.”