A few excerpts. The full article is available here:
#1 Sir John Templeton: “Invest at the point of maximum pessimism.”
#2 Don’t mistake a low P/E ratio for a value stock.
#3 Benjamin Graham: “Patience is the fund investor’s single most powerful ally.”
#6 Warren Buffett: “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1!”
#8 Barry Sternlicht: Pay attention to the big themes, because they are what will help you earn ten times your money.
#16 Read Reminiscences of a Stock Operator by Edwin LeFèvre.
#18 Peter Lynch: “Never invest in any idea you can’t illustrate with a crayon.”
#23 Know your risk tolerance. Pick an asset allocation that lets you sleep at night, so you won’t panic and sell stocks at the bottom.
#24 Don’t keep too much in cash equivalents—over time, this “safe” investment barely keeps up with inflation.
#26 Benjamin Graham: “Adopt simple rules and stick to them.”
#40 Don’t let the mood swings of Mr. Market coax you into speculating.
#42 Sir John Templeton: “The four most dangerous words in investing are: ‘this time it’s different.’”
#44 Don’t underrate the importance of liquidity.
#49 Diversify globally to boost your portfolio’s risk-adjusted performance.
#50 Benjamin Graham: “Speculation is neither illegal, immoral nor (for most people) fattening to the pocketbook.”
#52 Diversify, but don’t overdo it.
#53 Set investing rules for yourself that block impulsive decisions.
#59 John Bogle: “Time is your friend. Impulse is your enemy.”
#62 Defy conventional wisdom and increase your stock allocation after retirement.
#63 To make money in small-cap stocks, look for novel business methods and niches, not the next blockbuster drug.
#67 Warren Buffett: “Be fearful when others are greedy, and be greedy when others are fearful.”
#68 Invest to meet goals, not to beat indexes.
#69 Clarify your own objectives by writing an Investment Policy Statement.
#75 Peter Lynch: “Go for a business that any idiot can run—because sooner or later, any idiot is probably going to run it.”
#82 The most successful investors spend many hours at it each day and have passion and patience. There are no shortcuts.
#83 Warren Buffett: “Diversification is protection against ignorance.”
#101 Gary Shilling: “The market can remain irrational longer than you can remain solvent.”
#102 Beware dividend traps—fat payouts supported by declining cash flow.
#108 Learn a lesson from each stock-picking mistake.
#112 Buy stocks of companies still controlled by their billionaire founders.
#114 Louis Bacon: “As a speculator you must embrace disorder and chaos.”
#115 Almost all great value investors look for market anomalies or disconnects that they can exploit.
#116 Warren Buffett: “Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.”
#117 Always keep some investment powder dry.
#124 Burton Malkiel: “Start saving now, not later: Time is money.”
#126 Read How to Make Money in Stocks by William J. O’Neil.
#130 Don’t buy a large amount of a thinly traded stock all at once.
#133 Don’t be afraid to buy into strength.
#134 It’s okay to chase performance—sometimes.
#135 Burton Malkiel: “In the stock market, past is not prologue.”
#142 Identify companies that gouge you yet keep your business. Buy them.
#143 Buy stocks like socks—good quality on sale.
#147 Dollar-cost average the whole stock market.
#148 Buy companies with high ratios of gross profits-to-total assets.
#149 John Neff: “Buy on the cannons and sell on the trumpets.”
#150 Monitor your individual stocks; set a Google news alert and watch for signs of possible trouble.
#157 Burton Malkiel: “Tune out the financial TV channels. Watch the cooking channel or the gardening channel if you want useful advice.”
#158 Warren Buffett: “Returns decrease as motion increases.’’
#159 Ron Baron: “Don’t waste your time short-selling. Show me the short-sellers’ yachts.”
#166 Barry Ritholtz: “Never confuse investing with trading.”
#167 Don’t let the tax tail wag the investment dog.
#174 Benjamin Graham: “It is absurd to think that the general public can ever make money out of market forecasts. For who will buy when the general public, at a given signal, rushes to sell out at a profit?”
#179 Donald Trump: “Sometimes your best investments are the ones you don’t make.”
#189 Warren Buffett: “What is smart at one price is dumb at another.”
#191 Strong stocks tend to stay that way. Buy high and sell higher.
#194 Read Common Stocks and Uncommon Profits by Philip A. Fisher.
#196 John Neff: “When you feel like bragging, it’s probably time to sell.”
#199 Warren Buffett: “The risks of being out of the game are huge compared to the risks of being in it.”
#201 Buy stocks when a magazine cover declares “The Death of Equities.”
#214 Low-priced stocks aren’t necessarily cheap.
#215 Make sure a stock’s dividends are less than its cash flow and likely to remain that way.
#216 Warren Buffett: “Risk comes from not knowing what you’re doing.”
#222 If you have no time for complexity, diversify your portfolio with just three mutual funds.
#226 Burton Malkiel: “Trust in time, rather than timing.”
#236 Follow top money-manager moves. Even the great investors piggyback on other smart investors.
#237 David Dreman: “The time to buy is when there’s blood on the streets.”
#245 Warren Buffett: “Time is the friend of the wonderful business, the enemy of the mediocre.”
#246 Don’t chase yesterday’s winners unless they’re still winning.
#253 Like Warren Buffett, make concentrated bets in stocks that you have high confidence in.
#258 Over the long run, small-cap stocks have outperformed big blue chips.
#272 Warren Buffett: “No matter how serene today may be, tomorrow is always uncertain.”
#277 Peter Lynch: “Know what you own and know why you own it.”
#278 Have your kid read The Little Book That Beats the Market by Joel Greenblatt.
#279 Don’t fall for cheap stocks that are really worth even less.
#280 Read the classic Where Are the Customers’ Yachts? by Fred Schwed Jr.
#282 Benjamin Graham: Speculate only with a separate small portion of your capital.
#284 Learn what behavioral economists have found about self-destructive investor behavior—so you can try to avoid these common and expensive mistakes.
#286 Benjamin Graham: “Every nonprofessional who operates on margin … is ipso facto speculating.”
#291 Never sell a stock that keeps on rising in price.
#292 Warren Buffett: “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
#293 Ben Franklin: “An investment in knowledge pays the best interest.”
#295 Don’t try to impose your ego on the market.
#297 Barry Sternlicht: You have to be willing to change your mind. If you are a stubborn mule, you’ll get killed.
#298 Read Warren Buffett’s favorite book, Benjamin Graham’s Intelligent Investor.
#313 Use a “flight path” approach to asset allocation, raising your exposure to stocks as you become a more confident investor.
#314 Know your sell rules before you buy.
#315 Read letters of great investors such as Warren Buffett and Jeremy Grantham online.
#321 Warren Buffett: “You only find out who is swimming naked when the tide goes out.”
#333 Invest in businesses with sustainable competitive advantages.
#334 Don’t fight the tape.
#335 Remember, three out of four stocks follow the market’s overall trend.
#337 Spend 25% less than you make—it will give you flexibility to pursue the big opportunity.
#339 Warren Buffett: “Investors should remember that excitement and expenses are their enemies.”
#344 Gary Shilling: Don’t try to reinvent the wheel. Instead, intelligently and efficiently apply what is already well known.
#345 Warren Buffett: “You don’t have to make money back the same way you lost it.”
#354 When pundits declare the death of “buy-and-hold” it could well be the sign of a market bottom.
#355 Warren Buffett: “It’s optimism that is the enemy of the rational buyer.”
#356 Burton Malkiel: “ ‘Efficient markets’ does not mean that the price of every security at every moment in time is correct.”
#358 Understand how the businesses you invest in make money.
#360 When company insiders buy, you should, too.
#361 Benjamin Graham: Those who want “freedom from concern” must accept lower returns.
#362 Warren Buffett: It is “far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price.”
#363 Burton Malkiel: “Avoid the temptation to follow the herd.”