What history does prove is that how risk... by Jason Zweig | We Heart Quotes

What history does prove is that how risky stocks seem, and how risky they actually are, are inversely correlated.

- Jason Zweig

Other quotes by Jason Zweig

The alluring, long-shot chance of a huge gain is the grease that lubricates the machine of innovation.

- Jason Zweig

Every profession is a conspiracy against the laity, and every profession’s jargon is meant to confuse and exclude those who aren’t part of the guild.

- Jason Zweig

That’s why one of my favorite investing rules is 'If the market is open, your wallet should be closed.' You should never act on an investing idea the same day you get it; the next day, your mood and situation will have changed, and the facts may look different to you. Sleeping on it is one of the simplest and best ways to make sure your decision is not just a momentary whim.

- Jason Zweig

The risk you are likely to be rewarded for taking is the risk of owning all stocks. In effect, rather than betting on one roll of the dice, one spin at the roulette wheel, or a single hand at the blackjack table, you can own the whole casino. You can do this effortlessly, cheaply, and reliably by buying a total stock-market index fund, a low-cost portfolio of all the stocks worth owning.

- Jason Zweig

If you buy-and then hold-a total stock market index fund, it is mathematically certain that you will outperform the vast majority of all other investors in the long run. Graham praised index funds as the best choice for individual investors, as does Warren Buffett.

- Jason Zweig

A stock is not cheap or expensive merely because its price is below or above a particular number. It is cheap or expensive only in relation to the fundamental value of the underlying business, which has nothing to do with whether the share price is near an anchor. If you find yourself getting excited over any investment based purely on its price, you’re anchoring.

- Jason Zweig

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