Investment Knowledge Quotes

Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

If book knowledge made great investors, than the librarians would all be rich.

Speculators often prosper through ignorance; it is a cliché that in a roaring bull market knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss

People with low financial literacy standards are often unable to take their ideas and create assets out of them.

Investing is fun and exciting, but dangerous if you don't do any work.

Investing is not nearly as difficult as it looks. Successful investing involves doing a few things right and avoiding serious mistakes.

It's better to do nothing with your money than something you don't understand.

Maybe we should teach schoolchildren probability theory and investment risk management.

We shouldn't think anyone needs a Ph.D. in advanced investing in order to begin to invest.

I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business. And what I learn today may be useful to me two years from now. That's really the wonderful thing about investments is your knowledge is cumulative.

The surest way to ruin a man who doesn't know how to handle money is to give him some.

By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.

You can learn investing by reading books.

Never invest in a business you don't understand.

In terms of my profession, I'm passionate about financial literacy. I want to live in a financially literate society. I want kids to understand the importance of savings and investing. I want to try to replicate the great savers who came out of the Depression, the best savers the country has ever seen. It's crucial that people understand the importance of financial literacy, because it's actually life saving.

I think one of the key differentiators I bring to the table as a venture capitalist is a solid understanding of the public markets and how they operate.

I don't invest in what I don't understand. And I don't want to understand Facebook.

As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.

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 what they don't know. Then again, there is a third type of investor: the investment professional, who indeed knows he doesn't know, but whose livelihood depends upon appearing to know.

Well, the most important thing in investing is to know what you're investing in, and if you're confident in the outcome, it's important to stay true to your position.

Republicans are suggesting that you take your retirement money and invest it in the stock market to take care of yourself but that leaves you with choices that you may not know anything about. The purpose of social Security is that you don't fall through the crack and find yourself destitute.

As a result of overdiversification, their (active managers) returns get watered down. Diversification covers up ignorance. Active managers haven't done enough research into any of their companies. If managers have 200 positions, do you think they know what's going on at any one of those companies at this moment?

If the investor is uneducated, anything he or she invests in will be risky. So it's not the investment that is risky. It's the investor.

If your broker or investment advisor is not familiar with the concept of standard deviation of returns, get a new one.