Posts Tagged ‘profits’

“Research firm Dalbar publishes an annual study on investor behavior called the Quantitative Analysis of Investor Behavior (“QAIB”).  Every year since 1994, the QAIB has compared stock market returns over the previous decades with returns earned by real investors.  The result is always the same: The market beats the investor.

For the 30 years ended December 31, 2015, the S&P 500 returned 10.4% per year, on average.  Equity mutual fund investors earned an average return of just 3.7% per year.

To make plenty of money in stocks, you must behave better than the vast herd of investors.  A single behavior – refusing to sell at market bottoms – would have multiplied profits nearly tenfold.” -Dan Ferris

“How to increase your wealth one decimal point at a time:  Develop a financially valuable skill.  A financially valuable skill is a skill that will help you climb the wealth ladder one step at a time.  It is a skill that will put you in the mix whenever the opportunity to acquire wealth appears.

There are not many financially valuable skills.  In fact, there are basically only four: marketing, selling, coming up with profitable ideas, and managing profits.” -Mark Ford

“Capitalism is a system whereby profits and losses are private.  Serving customers well leads to profits; failing to do so leads to losses or bankruptcy.  Socializing the losses while keeping profits private encourages reckless risk taking and sloppy business management and causes “private” businesses to operate more like government bureaucracies.” –Thomas DiLorenzo