Market volatility can distract investors from the gains they’re aiming to achieve over the long term. But it’s important to keep focused on that wider growth goal.
In this video clip from “The 5,” recorded on Nov. 9, Fool.com contributors Trevor Jennewine, Zane Fracek, and Demitri Kalogeropoulos highlight an investing quote that helps them stay focused in a turbulent market.
Trevor Jennewine: I always like looking at quotes from investors. I just thought we could each share one of our favorite quotes. Zane, we will start with you.
Zane Fracek: Sure. I can’t really even come up with a quote off the top of my head. But I found one that was interesting.
It is, “I don’t want to spend my time trying to earn a lot of little profits, I want very big profits that I am ready to wait for.” I think that just resonates with me and my investing style. I’m noticing now I don’t even have who said it. I will find that and get back to you. But it just resonates with me like how I said with the peace of mind thing earlier and sleeping well at night.
I realized pretty quickly being glued to your screen and not caring about every little news article or price shift that happens. It’s just not the way to invest. I’d rather have my life to live, not go do a screen. I like finding a couple of companies that I really like to dog in to and I’m ready and willing to wait for those gains.
Jennewine: Yeah. This isn’t my quote, but I remember hearing somebody say that it’s OK to pay attention to all those things as the news articles come in and you can check your portfolio several times a day if you want to as long as you’re able to filter out 99.9 percent of that information. Because most of it doesn’t warrant a reaction. I think that’s good. Demitri, how about you?
Demitri Kalogeropoulos: I like that one too.
The one that came in mind for me is, “Only when the tide goes out, you discover who’s been swimming naked.”
That’s a Warren Buffett quote and I like it a lot and I like it in today’s market too. The lesson I can take in right now is it’s hard today in this market to separate the great companies from just good companies that I know personally read maybe dozens of earnings reports over this earnings season, it seems like every single one of them are just blockbusters and this is unusual time. But that’s a good reminder that it’s the tough times that it’s easier to see what makes a business so great in those times.
It’s a little bit harder now, makes our work a little bit more difficult, I think as investors.
Jennewine: Yeah. I really think that’s a great quote too and very timely like you said.
I’m going to go with a Peter Lynch quote and it’s, “Behind every stock as a company, find out what it’s doing.”
I think something that Foolish investors do very well is recognizing the importance of research before you jump into the stock. We’re not just buying ticker symbols. It’s important to dig into the company, understand what they’re doing, understand why you want to invest your hard earned dollars rather than just throwing money at stocks that are making headlines or things that are moving upward quickly. I think taking the time to research is probably one of the most important skills that any investor can develop.
Yes, that’s a Peter Lynch quote.