STOCK MARKET QUOTES FROM A BOOK BY MOTILALOSWAL(SHAREBROKERS)

Success in stock market is being 90% right 70% of the time.

Don’t confuse brains with the bull market.

Success in the stock market usually comes to those, who are too busy to be looking for it.

Markets test patience and reward conviction

Markets can remain irrational longer than you can remain solvent.

Everyone has brain power to make money in stocks, but few have the stomach.

In the stock market, a good nervous system is more important than a good head.

Forecasts tell us more about the forecasters than the future.

Risk comes from not knowing what you are doing.

It is better to be approximately right than to be precisely wrong.

Rational people acting independently can produce irrational market results.

At stock market, money is moved from active to patient investors.

In the stock market, luck never gives, it only lends.

Fear is the foe of the faddist but a friend of the fundamentalist.

Investment managers are not beating the market, the market is beating them

• “ A stock broker is one who invests other people’s money until its all gone.”
-Woody Allen, American Film Maker
• “ Average investors who try to do a lot of trading will only make their brokers rich.”
-Michael Jenson, Finance Professor -Harvard.
• “ To the investment manager, soft dollars are someone else’s money and hard dollars are your own.”
-Dean own.”Ibid.
• “ Nobody works as hard for his money as the man who marries it.”
-Kin Hubbard, 1868-1930, American Journalist.
• “ There are three classes of people who don’t think markets work: the Cubans, the North Koreans and the
active find managers.”-Rex Sinquefield, Dimensional Fund Managers.
 • “ It is difficult to find a portfolio to find a portfolio manager who will continue to provide superior
performance after he is retained”-Eugene B. Burroughs
• “ We have two classes of forecasters: Those who don’t know and those who don’t know they
don’t know.”-Jhon Kenneth Galbraith.
• “ The periods of boredom have grown shorter and shorter-and the terrors last a bit longer.”
-Arthur Cashin, Floor Broker, New York Stock Exchange.
• “ Stocks are bought on expectations, not facts.”
-Gerald M. Loeb
• “ I never attempt to make money on the Stock Market. I buy on the assumption that they could
close the market the next day the next day not reopen it for five years.” -Warren Buffet.

• “ Give me a stock clerk with a goal and I’II give you a man who will make history. Give me a man
with no goals and I’II give you a stock clerk.” -James Cash.
• “ Sometimes your best investments are the ones you don’t make.’ -Donald Trump.

• “ Great investment opportunities come around when excellent companies are surrounded by
unusual circumstances that cause the stock to be misappraised.” -Warren Buffet.

• “ Gambling with cards or dice or stock is all one thing. It’s getting money without giving an
equivalent for it .” Henry Ward Beecher.
• “ Never make forecasts, especially about the future.” -Samuel Goldwin.

• “ Sell to the sleeping point.—if you are troubled by an investment but still desire to hang onto
it,sell just enough so that you can feel that you’ve ‘dealt’ with the anxiety and can calmly sleep at
night, but you’ve kept enough to feel comfortable with what you have left.”
• “ Obvious prospects for physical growth in a business do not translate into obvious profits for
investors” -Ben Graham in The Intelligent Investor.

MONEY MANAGEMENT QUTES FROM A BOOK BY MOTILAL OSWAL.

Success in trading depends upon hardware, software, trading strategy and last but not the
least money management.

Managing money requires more skill than making it.

Risk in the market comes from what you don't know.

Man’s most powerful discovery- “Compound Interest” It is never your thinking that makes
big money, it is sitting.

When you combine ignorance and borrowed money, the consequences can be disastrous.

Money is made more due to understanding rather than information.

It is better to have a hen tomorrow, than an egg today.

The probability of outsized returns goes up, as the size of portfolio goes down.

Concentrate investments in a few great stocks and have fortitude to hold through price
fluctuations. Never leverage your focused portfolio.

Focus on what business will do in the years ahead instead of money managers in the days
ahead.

Secret of sound investment is margin of safety.

Buy a business, don’t rent stocks.

Before even thinking stocks, see how money was made in the past.

There are old traders and there are bold traders, but no old and bold traders.(Old is not gold
here, it seems)

Traders know the price of everything and value of nothing,

Short term transactions frequently act as invisible foot, kicking society in the shin.

Timing is vital. It is much more important to buy cheap than to sell dear.

Behave according to what is rational rather than what is fashionable.

People tend to overreact to bad news and react slowly to good news.

Nobody gets market timing right even half the time.

When the gap between perception and reality is maximum, price is the best.

Stock will move above or below its business value depending more on emotions than
economics.

When the degree of consensus was the greatest, the extent of error was the most
pronounced.

One of the hardest things to imagine is that you are not smarter than average.

Group consensus can be so powerful that it erases critical past experience and common
sense.

Passion is more powerful than brain power.

Disregard majority opinion; it is probably wrong.

“ Most investors don’t even stop to consider how much business a company does. All they look at are earnings per
share and net assets per share.” -Kenneth L Fisher, stock market guru.
“ Investment planning is about structuring exposure to risk factors.” -Fama , Gene Jr.
“ Emotions are your worst enemy in the stock market.” -Don Hays.
“ A maket is the combined behavior of thousands of people responding to information, misinformation and whim.”
-Kenneth Chang.
“ It is the part or wise man to keep himself today for tomorrow, and not venture all his eggs in one basket,” -Miguel
de Carvantes
“ Risk is good. Not properly managing your risk is a dangerous leap” -Evel Knievel, Motorcylist.
“ The essence of effective portfolio construction is the use of a large number of poorly correlated assets”
-William Bernstein.
“ Sometimes your best investments are the ones you don’t make.” -Donald Trump.
“ Great investment opportunities come around when excellent companies are surrounded by unusual
circumstances that cause the stock to be misappraised.” -Warren Buffet.
“ The most predictable thing about the stock market is the number of experts who take credit for
predicting it.” -Dave Weinbaum
“ Value Investing-The art of buying low and selling lower.” -Anon.
“ P/E ratio- The percentage of investors wetting their pants as this market keeps crashing.” Anon
“ Countless incidents have demonstrated that a dollar of reported profits can easily prove to be worth less
than 100 cents once the dust has settled.” -Martin S Fridson , director, US investment bank Merrill lynch.
“ Every set of published accounts is based on books which have been gently cooked or completely
roasted.” -lan Griffiths.
“ Astronomic price earnings ratios rarely last for long, as they thrive on excessive hope and for that reason
the most has to be made of them while they persist.” -Jim Slater, Private client guru.
“It’s human nature to find patterns where there are none and to find skill where luck is a more likely
explanation (particularly if your’re the lucky [mutual fund] manager).” -Bernstein,William.
”To invest blindly in the TMT (Technology,Media and Telecom) sector is a bit like assuming someone’s
bound to be good at cricket just because they’re Australian.” -Jonathan Maitland.
“ It is a myth that profits are higher in fast growing industries.” -John Kay, Economist and academic.
“ The children (or designated heirs) of a great CEO are about as likely to excel as replacement CEOs as
are any of Beethoven’s children to write great symphonies.” -Robert A G Monks.
“ Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can
do it.” -Peter Lynch.
“ 90 % of the people in the stock market, professionals and amateurs alike, simply haven’t done enough
homework,”
-William J.O’Neil.
“ I have probably purchased fifty ‘hot tips’ in my career, maybe even more. When I put them all together, I
know I am a net loser.” -Charles Schwab.
“ The problem with the person who thinks he’s a long-term investor and imperivous to short-term
gyrations is that the emotion of fear and pain will eventually make him sell badly.” -Robert Wibbelsmen.
“ The function of the press in society is to inform, but its role in society is to make money.” -A. J. Liebling.
“ Money talks… but all mine ever says is good-bye.” -Anon
“ Bear Market-A 6to 18 month period when the kids get no allowance, the wife gets no jewelry and the
husband get no sex.” -Anon
“ Market Correction-The day after you buy stocks.” -Anon
“ Don’t gamble! Take all your savings and buy some good stock and hold it ‘till it goes up, then sell it. If it
don’t go up, don’t buy it.” -Will Rogers

“ Practicing the Golden Rule is not a sacrifice; it is an investment.” -Anonymous.

“ You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and
your reasoning is right-and that’s the only thing that makes you right.” -Warren Buffett, the world’s most successful
investor.
“I know from experience that nobody can give me a tip or a series of tips that will make more money for me than
my own judgment.” -Jesse Livermore, the greatest stock market trader who ever lived.
“ No matter what information you have, no matter what you are doing, you can be wrong.” -Larry Hite, Mint
Investment Management Company.

“ You cannot teach a man anything; you can only help him to find it within himself.” -Galileo Galilei.
“ Investment, if you like, is a math exam where the powers that be work out the answers based on new
formulae they develop after your papers have been handed in.” -Dr Marc Faber, international stock
market guru (famous bear).
“ The investor’s chief problem-and even his woarst enemy is likely to be himself.” -Peter Lynch.
“ The only way to “beat an index” is to invest in something other than the index. Why would you, when the
only source of long-term risk and return data is the index ?” -Hebner, Mark, Founder, Index Funds
Advisors, Inc.
“ Market Timing is a wicked idea. Don’t try it ever.” -Ellis, Charles D.
“ There are two kinds of investors, be they large or small: those who don’t know where the market is
headed, and those who don’t know that they don’t know. Then again, there is a third type of investor –the
investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends
upon appearing to know.” -Bernstein, William.
“ Markets can remain irrational longer than you can remain solvent” -John Maynard Keynes.
“ The average long-term experience in investing is never surprising, but the short term experience is
always surprising. We now know to focus not on rate of return, but on the informed management of risk.”
-Ellis, Charles.
“ Since the dawn of capitalism, there has been one golden rule: “If you want to make money, you have to
take risks.” -Announncer.
“ If your broker [or investment advisor] is not familiar with the concept of standard deviation of returns, get
a new one.” -Bernstein, William.
“ Investors must keep in mind that there’s a difference between a good company and a good stock. After
all, you can buy a good car but pay too much for it .” -Richard Thaler.
“ Buy on the cannons, sell on the trumpets.” -Old French Proverb.
“ The four most dangerous words in investing are, It’s different this time.” -Sir John Templeton, legendary
investor.
“ Design a portfolio you are not likely to trade… akin to premarital counseling advice; try to build a
portfolio that you can live with for a long, long time.” -Robert D. Arnott, President, First Quadrant Corp.