The Traders Journal

My Pal Warren on the 10 Stages of Investing

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I’m a big fan of pithy quotes.  When I teach my college class “Tensile Trading”, I use quotes extensively to help illustrate each of the essential 10 stages of stock market mastery.  This week, I thought I’d have a guest blogger share his wisdom with respect to each of my ten elements for successful investing.  These are some of my favorite quotes from Warren Buffett.


  1. Money Management:
    “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president.  Yet the Dow rose from 66 to 11,497.”
  2. The Business of Investing:  
    “I always knew I was going to be rich.  I don’t think I ever doubted it for a minute.”
  3. The Investor Self: 
    “It’s better to hang out with people better than you.  Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
  4. Market Analysis:
    “Risk comes from not knowing what you’re doing.”
  5. Routines:
    “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
  6. Stalking:
    “I don’t look to jump over 7-foot bars;  I look around for 1-foot bars that I can step over.”
  7. Buying:
    “Why not invest your assets in the companies you really like?  As Mae West said, “Too much of a good thing can be wonderful.”
  8. Monitoring Positions:
    “Rule No. 1:  Never lose money.  Rule No. 2:  Never forget Rule No. 1.”
  9. Selling:
    “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
  10. Review:
    “If past history was all there was to the game, the richest people would be librarians.”

Bottomline: As a trader, I’ve found inspiration in the most unexpected places. These are little gems that have stayed with me and positively impacted my investing results. Warren Buffett’s investment methodology is very different than mine, but I have to admit that he has provided some of my personal favorites. I’ve embraced and profited from the experience.

Trade well; trade with discipline!
-Gatis Roze, MBA, CMT

Presenter of the Tensile Trading DVD, Stock Market Mastery.

Developer of the StockCharts.com Tensile Trading ChartPack

P.S. Click HERE for information on my future appearances & seminars.




 

Gatis Roze
About the authors: , CMT, holds an MBA from the Stanford Graduate School of Business and is a past president of the Technical Securities Analysts Association (TSAA). He is also the co-author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). A full-time investor for over 25 years, Gatis has taught sold-out investment courses throughout the Pacific Northwest and beyond since 2000. Learn More

Grayson Roze
is the author of Trading for Dummies (Wiley, 2017) and Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). He has worked in the financial services industry for StockCharts.com since 2012, and now serves as the Business Manager for the company. He holds a Bachelor's degree from Swarthmore College. Learn More
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