While preparing for The Intelligent Investor Book Review I underlined the great quotes from the book. They provide an interesting and valuable perspective of, what may be, the greatest investing book ever written. I have included the page number for each quote for easy reference.
...Examples demonstrate that volatility lowers your investment returns. Arithmetic and geometric averages serve different purposes and only geometric averages will accurately reflect compounded investment returns.
Even small differences in investment returns can make huge differences in results over long periods of time. The consequence is investors need to put additional emphasis on the amount of volatility they are willing to accept. It may be that you can increase your long term investment returns by taking LESS risk!
...Is Gold a good investment? It depends on why you are buying the precious metal. During your investment analysis you need to ask yourself: is gold an investment or a store of value?
...Dividend growth investing combines the benefits of compounding dividends, compounding the growth of dividends per share, and the increasing value of the shares themselves. The key principle is to take advantage of the power of exponential growth by reinvesting growing dividends over long periods of time. Interest compounding is a powerful financial concept, but dividend growth compounding multiplies the benefits of exponential growth.
...Exponential growth is sometimes described as the “miracle of compounding” because of the extraordinary explosion that takes place over time. Investors can use double time and the Rule of 72 to estimate the power of exponential growth to meet their retirement goals. Use this important financial concept to meet your investment goals!
...
As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
Read More.