If you want to achieve financial independence and retire early, it’s worth paying attention to the world’s best investors. By spending a few minutes analysing how these individuals have made their millions, it may improve your own investing success. Today I’ve put together four excellent investing quotes from some of the best investors on the planet. Could this advice help you retire earlier?
“The big money is not in the buying or the selling, but in the waiting” – Charlie Munger
This is a great quote from Warren Buffett’s right-hand man Charlie Munger. Both he and Buffett understand that patience is essential in order to make big gains from shares. All too often, investors expect instant gratification from the stock market. However, if you want to capture the big gains, you need to be patient.
“In my investing career, the best gains usually have come in the third or fourth year, not in the third or fourth week, or the third or fourth month” – Peter Lynch
Another investor who understood the power of long-term investing, portfolio manager Peter Lynch averaged a 29.2% annual return between 1977 and 1990. Lynch has written several bestselling books on investing including One Up on Wall Street and Beating the Street. While they’re a little old now, both are worth reading, in my opinion.
I’ve found this particular advice to be true, especially with small-caps. Give a company ample time to grow its earnings and the rewards can be spectacular.
“I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it” – Mark Cuban
UK investors may not be familiar with Mark Cuban, however he’s very well known in the US due to his involvement on ‘Shark Tank’ – the American version of Dragon’s Den. He’s also worth a cool $3.3bn, so clearly knows a bit about investing.
I agree with his logic here. When you own a dividend stock, you own an asset that pays you a stream of income every year. In contrast, with a non-dividend paying stock, you essentially just own a share certificate that you’re hoping someone will one day buy from you for a higher price than you paid.
By building up a portfolio of high-quality dividend stocks, you can create a sizeable second income stream. That means less reliance on a 9-to-5 job, and potentially, an earlier retirement.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for” – Robert Kiyosaki
Lastly, this is a brilliant quote from the author of bestseller Rich Dad, Poor Dad, Robert Kiyosaki. If you’re interested in achieving financial independence, I’d highly recommend reading this book.
Many people believe that in order to retire early, they need to earn a high salary. That’s simply not true. By saving consistently, and having your money work for you through investments such as dividend stocks and investment trusts, it’s possible to build up a significant savings pot over time and escape the daily grind sooner.