Lessons On Investing: From The Experts

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1) John (Jack) Bogle- master of mutual fund investing. Introduced the first index fund . He says:

“Time is your friend; impulse is your enemy.”
“When reward is at its pinnacle, risk is near at hand.”

2) Warren Buffet- master of stocks and business investing (by buying companies through Berkshire Hathaway). He says:

“Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner.”
“Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it.”

3) David Dreman is a contrarian investor. Great example of what it means to go against status quo. He says:

“Psychology is probably the most important factor in the market – and one that is least understood.”
“If you have good stocks and you really know them, you’ll make money if you’re patient over three years or more.”

4) Philip A Fisher, most influential investor of all time. Advised chief executives and had a career that spanned 70 years. Master of stock investing. He says:

“I don’t want a lot of good investments; I want a few outstanding ones.”

“I sought out Phil Fisher after reading his “Common Stocks and Uncommon Profits”. When I met him, I was impressed by the man and his ideas.
A thorough understanding of a business, by using Phil’s techniques … enables one to make intelligent investment commitments.”
 (Warren Buffett)

5) Benjamin Graham amongst many other things was the master of value investing. He was basically an investing analyst which made him an investing
manager and financial educator. He says:

“Even the intelligent investor is likely to need considerable willpower to keep from following the crowd.”
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.”

6) Bill Gross master of bond investing, was called “king of bonds.” He is the world’s leading bond fund manager. He says:

“Finding the best person or the best organization to invest your money is one of the most important financial decisions you’ll ever make.”
“Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count … Good [investment] ideas should not be diversified away into meaningless oblivion.”

7) Carl Ichan master of stock investing. A catchphrase by Wall Street being “The Ichan Lift” meant that stocks rose when Ichan bought them from companies he believed was run poorly.
He says:

“I make money. Nothing wrong with that. That’s what I want to do. That’s what I’m here to do. That’s what I enjoy.”
“When most investors, including the pros, all agree on something, they’re usually wrong.”

8) Jesse L Livermore, a self-made stock trader. Famous for making and losing several multimillion dollar fortunes. He says:

“The average man doesn’t wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.”

“When it comes to selling stocks, it is plain that nobody can sell unless somebody wants those stocks. If you operate on a large scale, you will have to bear that in mind all the time.”

9) Peter Lynch, master of stock investing. Nicknamed “chameleon” for adapting to whatever investing style worked at the time. He says:

“Investing without research is like playing stud poker and never looking at the cards.”
“If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes.”

10) Bill Miller, master of value investing. He was a portfolio manager at a company whose funds grew from $750 million in 1950 to $20 billion in 2006 under
his management. He had an interestingly different view of value investing. He says:

“I often remind our analysts that 100% of the information you have about a company represents the past, and 100% of a stock’s valuation depends on the future.”

“What we try to do is take advantage of errors others make, usually because they are too short-term oriented, or they react to dramatic events, or they overestimate the impact of events, and so on.”

11) John Neff was a portfolio manager who preferred to buy on bad news after a stock had taken a substantial plunge and to take “indirect paths” to buying in to popular industries.
He was considered a professional’s professional because many fund managers entrusted their money to him with the belief that it would be in safe hands. He says:

“It’s not always easy to do what’s not popular, but that’s where you make your money.
Buy stocks that look bad to less careful investors and hang on until their real value is recognized.”

“Successful stocks don’t tell you when to sell. When you feel like bragging, it’s probably time to sell.”

12)  William J O’Niel was a top performing stock broker and inventor of the growth stock investing strategy. In short  he seeks out only those growth
stocks that have the greatest potential for swift price rises from the moment they are purchased. He says:

“Since the market tends to go in the opposite direction of what the majority of people think, I would say 95% of all these people you hear on TV shows are giving you their personal opinion. And personal opinions are almost always worthless … facts and markets are far more reliable.”

“The whole secret to winning and losing in the stock market is to lose the least amount possible when you’re not right.”

13) Julian Robertson, said to have the best hedge fund throughout the 80s and 90s. His hedge fund Tiger Management became the world’s largest fund. He was a macro trader, and often rode worldwide trends. He says:

Our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don’t do better than the 200 worst, you should probably be in another business.”

“Hear a [stock] story, analyze and buy aggressively if it feels right.”

14) Thomas Rowe Price Jr was called, “the father of growth investing,” who  pioneered the methodology of growth investing by focusing on well-managed companies in fertile fields whose earnings and dividends were expected to grow faster than inflation and the overall economy. He says:

“No one can see ahead three years, let alone five or ten. Competition, new inventions – all kinds of things – can change the situation in twelve months.”
“It is better to be early than too late in recognizing the passing of one era, the waning of old investment favorites and the advent of a new era affording new opportunities for the investor.”

15) James D Slater master of stock investing. He invented the term  price-earnings to earnings-growth ratio to allow people to look beyond just the price earnings ratio. He says:

Most leading brokers cannot spare the time and money to research smaller stocks. You are therefore more likely to find a bargain in this relatively under-exploited area of the stock market.”

“You get out of an investment what you put into it, so the first decision you have to make is how much time you are prepared to devote to the initial task of acquiring a basic knowledge of investment.

16) George Soros was a master at translating broad-brush economic trends into highly leveraged, killer plays in bonds and currencies. As an investor, Soros was a short-term speculator, making huge bets on the directions of financial markets. He says:
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.”
“Playing by the rules, one does the best he can, irrespective of the social consequences. Whereas in making the rules, people ought to be concerned with the social consequences and not with their personal interests.”
17) Michael Steinhardt was a stock trader whose focus was on emphasizing macro asset allocation type moves from which he harvested his gains.
He says:
“I do an enormous amount of trading, not necessarily just for profit, but also because it opens up other opportunities. I get a chance to smell a lot of things. Trading is a catalyst.”
“I always used fundamentals. But the fact is that often, the time frame of my investments was short-term.”
18) John Templeton a great contrarian investor who believed that the best bargains were in stocks that were completely neglected – those that other investors were not even studying. He says:
“Rejecting technical analysis as a method for investing, Templeton says, “You must be a fundamentalist to be really successful in the market.”
“If you want to have a better performance than the crowd, you must do things differently from the crowd.”
19) Ralph Wanger well known for long term shareholding. He was quoted saying, “Be a long-term holder of smaller companies with financial strength, entrepreneurial managers and understandable businesses that will benefit from a macroeconomic trend. He says:
“An attractive investment area must have favorable characteristics that should last five years or longer.”“Chances are, things have changed enough so that whatever made you a success thirty years ago doesn’t work anymore.  I think that by concentrating on smaller companies, you improve your chances of catching the next wave.”
In Conclusion
If you read each of the quotes carefully you’ll notice three core things about investing:
a) Patience is inevitable. If you don’t like waiting for great returns and outstanding profits, you should be in another business.
b) The market cannot be predicted.
c) Knowledge of your investment is more important than any investment you make.
The common thing with all the people above is vast the knowledge they had with whatever they chose to invest in. Robert Kiyosaki says that it’s the investor that’s risky not the investment because without research you’re going in blind, no matter how good the investment
looks or sounds.
The purpose of the list above is to motivate people to make an effort to invest by first opening the eyes to the world of investing.
I sure learned a great deal from all of them. The brief introduction about each of them was intentional because the point was
to allow you to get an idea of who made the quote. I know some have slightly longer ones (introduction) than others but that’s because two or
more investors would have had the same investing style, so the idea would be to differentiate the methodology, not to make one
appear more important than the other. We should learn about the different types of investments and decide which one we’ll focus on
more than the others.
Even if you’re an employee or self employed, investing will help a lot with creating a budget surplus and a monthly surplus (increase in monthly income).
Lessons from the Bible
1) Diversify
Ecclesiastes 11:2
Give a portion to seven, yes, even [divide it] to eight, for you know not what evil may come upon the earth.Invest in stocks, commodities, real estate or businesses. Don’t keep all your eggs in one basket! Your portion
is your investment capital.

2) Know your investment
Proverbs 19:2
Desire without knowledge is not good, and to be overhasty is to sin and miss the mark.
It’s actually simple, avoid investments you don’t understand.

3) Carefully watch your investments
Proverbs 27:23-24
Be diligent to know the state of your flocks, and look well to your herds;
 For riches are not forever; does a crown endure to all generations?

This is not about tracking your investments, it’s about knowing the state of your investment. We are merely stewards of what is the Lord’s anyways. The key thing to understand is cash flow. Where does the money go once you invest it?
How can you grow an investment when you don’t know where it’s going?

In the same way the world needs more filmmakers who are also Christians,  the world needs more investors who are also Christians.

Here is my personal quote: Investing, more than anything else, is a character and knowledge subject.

 

What matters more, your business or God’s business?

Psalm 103:20-22

Bless (affectionately, gratefully praise) the Lord, you His angels, you mighty ones who do His commandments, hearkening to the voice of His word.

21 Bless (affectionately, gratefully praise) the Lord, all you His hosts, you His ministers who do His pleasure.

22 Bless the Lord, all His works in all places of His dominion; bless (affectionately, gratefully praise) the Lord, O my soul!

Psalm 34:1

I will bless the Lord at all times; His praise shall continually be in my mouth

How do you see God?

We all seem very well acquainted with various attributes of God, which are very important because they determine the way we relate with Him! The amount of time we give Him reveals the amount of love we have for Him. That sounds like a very challenging and convicting statement, yet it is true.

A few years ago I read Robert Kiyosaki’s book, “Rich Dad, Poor Dad,” and got so hooked, I went read parts 2, 3 and 2 other books by him! Then my friend Rolain (please see his inspirational blog) pointed out something very significant: the principles laid out encourage you to fail before you can succeed. I then decided at that moment to find out what God says about finances.

I was motivated by Dr Ed Silvoso’s book, “Anointed for Business,” because the one thing that caught my attention was the way he viewed God! This is how he sees Him, which is how I see Him too:

God- Chairman of the board
Jesus- CEO
Holy Spirit- Legal Counsel

The other amazing thing that came to mind as I was reading the book is how interesting it is that we seek God with all our hearts on Sundays at church, at cell groups, youth and various other church activities but not or some of the time at work! One might as well ask, “What doesn’t God know about business?” Some people only involve God with work when they 1) need a job or 2) are facing serious problems at work.

We truly have to consider at heart the question: What do you see God as?

We are merely stewards
Psalm 24:1 says, “The earth is the Lord’s, and the fullness of it, the world and they who dwell in it. 

If we have given God our whole life, doesn’t that include our work life? I remember eavesdropping very often in my school and some of my friends would say, “Mind your own business.” Now that term is used to encourage businessmen and women to put all their efforts into being as productive as possible in the company they work in, and with investing. For me it is alright to mind your own business, as long as you do it God’s way.

At the end of the day, all that is important is setting our minds (and keeping them set) on God’s heart for His business whom He’s entrusted us with (Colossians 3:2). I recently wrote a post on diverse weights and measures where I learned about why God wanted the Israelites to conduct business with integrity.

God’s business structure
 
As I read Paul’s encouragement to the Colossians and those in Ephesus, I discovered something about the way God wanted us to see His way of relating with (how we treat) each other at work.

To those under authority

To employees, self-employed and any position with whom you report to someone or are under authority:

Ephesians 6:5-8:

Servants (slaves), be obedient to those who are your physical masters, having respect for them and eager concern to please them, in singleness of motive and with all your heart, as [service] to Christ [Himself]—

Not in the way of eye-service [as if they were watching you] and only to please men, but as servants (slaves) of Christ, doing the will of God heartily and with your whole soul;

Rendering service readily with goodwill, as to the Lord and not to men,

Knowing that for whatever good anyone does, he will receive his reward from the Lord, whether he is slave or free.

Colossians 3:22-24:

Servants, obey in everything those who are your earthly masters, not only when their eyes are on you as pleasers of men, but in simplicity of purpose [with all your heart] because of your reverence for the Lord and as a sincere expression of your devotion to Him.

23 Whatever may be your task, work at it heartily (from the soul), as [something done] for the Lord and not for men,

24 Knowing [with all certainty] that it is from the Lord [and not from men] that you will receive the inheritance which is your [real] reward. [The One Whom] you are actually serving [is] the Lord Christ (the Messiah).

To those in authority

To leaders in business which will be business owners, chairmen, CEO’s, COO,s (Chief Operating Officers), Managing Directors, Presidents, Vice Presidents, General Managers and various Heads of Department (and any other positions I may have missed):

Ephesians 6:9:

You masters, act on the same [principle] toward them and give up threatening and using violent and abusive words, knowing that He Who is both their Master and yours is in heaven, and that there is no respect of persons (no partiality) with Him.

Now you may say, “That’s all good, but I’m often asked to do projects that require go against biblical principles,” or, “Our company has a reputation for promising more than they can deliver.” I will allow the Word to help us deal with such and similar issues in up coming posts. Until then, meditate (ponder and study) on these two passages and ask the Lord to bring to remembrance everything else you have learned on how He does business.

NB: No matter what line of work you are in, do it as unto the Lord.

These 4 Keys Will Unleash Divine Wealth And Prosperity Into Your Life

1) The Source.
God is your source:

James 1:17

Every good gift and every perfect (free, large, full) gift is from above; it comes down from the Father of all [that gives] light, in [the shining of] Whom there can be no variation [rising or setting] or shadow cast by His turning [as in an eclipse]

Matthew 11:28

Come to Me, all you who labor and are heavy-laden and overburdened, and I will cause you to rest. [I will ease and relieve and refresh your souls.]

John 4:13-14

Jesus answered her, All who drink of this water will be thirsty again.

14 But whoever takes a drink of the water that I will give him shall never, no never, be thirsty any more. But the water that I will give him shall become a spring of water welling up (flowing, bubbling) [continually] within him unto (into, for) eternal life

2) Seed.
Your Seed Is The Only Influence You Have Over Your Future. You are a walking warehouse of Seeds. Time is a Seed. Love is a Seed. Kindness is a Seed. Patience is a Seed. Everything you have is either a Seed or a Harvest; Whatever You Sow Is Your Seed. Whatever You Keep Is Your Harvest.

3) Soil.
Every Seed Is Powerless Until It Enters Into Agreement With Soil. The quality of the soil determines the Future of the Seed. Sow in the right Soil. Who is worth sowing into?

4) Supply.
The earth is the Lord’s (Psalm 24:1). Do you think your dream can be greater than The One Who created The Universe?

Acknowledgement
This post is info from Dr Mike Murdock and it inspired me to follow the steps! Hope it does the same for you.