Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it.
Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.
If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Succesful institutional traders often talk of quitting and going to trade for themselves. Only a handful of them manage to make the transition. Most traders who leave institutions get caught up in the emotions of fear, greed, elation, and panic when they start risking their own money.
In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.
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.
One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street. As long as they realize the market is a business like any other business, they have a good chance to prosper.
Another lesson I learned early is that there is nothing new in Wall Street. There can't be because speculation is as old as the hills.
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.
Once you think that something is improbable and everybody thinks it, people modify their behavior in a way that makes it more probable. Everyone thought it was so improbable that so many people would default on real estate, it actually created a greater probability that it would happen because more capital flowed into that sector.
It pays to write down your plan. You need to know exactly under what conditions you will enter and exit a trade. Do not make decisions on the spur of the moment, when you are vulnerable to being sucked into the crowd. Plans are created by reasoning individuals. Impulsive trades are made by sweaty group members.
Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
Markets are irrational in the short term but not over the long term. They sometimes offer fire sale prices on the greatest companies in the world.
Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.
It took me five years to learn to play the game intelligently enough to make big money when I was right.
Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.
I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.
There is only one side of the market and it is not the bull side or the bear side, but the right side.
There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
The pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes.