12 Investing Wisdom Nuggets

As a pilot who flies occasionally, I reflect on advice dispensed to flyers of all skills and experience levels:  A good pilot is always learning.

 

Another bit of wisdom passed from one generation of pilots to the next advises:  Good information leads to good decisions.  The two represent valuable advice for Dividend Farmers everywhere.  A great way to learn continuously and gather good information includes looking at those who’ve gone ahead on the investing path.  Below are 12 wisdom-packed quotes that may be helpful as you build your farm. 

"An investment in knowledge pays the best interest." - Benjamin Franklin

Couldn’t be more true.  And the motto that a good pilot is always learning is simply confirmation applied to dividend farming.

"The individual investor should act consistently as an investor and not as a speculator." - Ben Graham

Anyone can speculate.  Las Vegas proves it.  Investing requires time and diligence.  Speculating, not so much. 

"Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." - Dave Ramsey

Being good stewards of the financial resources entrusted to us means preparing for our families’ financial future and helping those in need.  That’s winning.

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson

Speculation.  Excitement.  Vegas.  That covers it.  As a DividendFarmer, I enjoy watching my crops grow.

“Never depend on a single income, make an investment to create a second source.”   -Warren Buffet

The essence of Dividend Farming.  Don’t invest without it.

“When you invest you are buying a day that you don’t have to work.” -Aya Laraya

Great perspective for those looking toward retirement.

"Spend each day trying to be a little wiser than you were when you woke up."  -- Charlie Munger

 

Charlie’s advice sounds simple, even trivial.  When practiced consistently the compounding results can be amazing.  Think what can happen as a Dividend Farmer if you become a little wiser each day?

“Fallible, emotional people determine price; cold, hard cash determines value.” -Christopher C. Davis

Profit is theory.  Cash is fact.  The market regularly prices securities upon profit or worse, forecast profit.  The latter is further from reality and value than the east is from the west.  Avoid the emotion and focus on the facts.

“The prudent person foresees danger and takes precautions.” -Proverbs 22:3

Biblical wisdom is timeless and priceless.  Think margin of safety in your investments.

“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.”  -Benjamin Graham

Margin of safety.  Foresee danger and take precautions.  Did Graham read Proverbs?

“Someone asked me once if I could condense into five words the most important qualities needed for a good investor, and I replied: ‘Motivation, humility, hard work, discipline.’”  -Mark Mobius

It seems these qualities find a home within 4 Things a Dividend Farmer Needs.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” -Warren Buffett

This may be the best and most visual way to describe the purpose of Dividend Farming.  Planting a crop (tree) today so our families and those we help can enjoy financial shade in the future.  It’s been said the best times to plant a tree are 20 years ago and today.  If you have not yet planted a tree or other crop on your Dividend Farm, why not start today?

The thoughts and opinions expressed here are those of the author, who is not a financial professional.  Opinions expressed should not be considered investment advice.  They are presented for discussion and entertainment purposes only.  For specific investment advice or assistance, please contact a registered investment advisor, licensed broker, or other financial professional.