Terry Savage Quotes

Interpretations of Popular Quotes

"Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ every time."

The quote suggests that investing success is not solely dependent on raw intelligence or high IQ. It implies that in the world of investing, individuals with average intelligence can still achieve success by applying knowledge, sound strategies, discipline, and patience, rather than relying only on superior intellectual abilities. This encourages those who may feel intimidated by the financial world to believe they have an equal opportunity to succeed if they educate themselves and make informed decisions.

"If you're going to invest in stocks, you might as well do it with the very best."

The quote by Terry Savage emphasizes the importance of quality over quantity when investing in stocks. In essence, she suggests that if one is going to engage in stock market investments, it would be prudent to focus on high-quality stocks that have a strong potential for growth and performance, rather than spreading resources across numerous stocks indiscriminately. This approach can help minimize risk and maximize returns over the long term.

"Buy on the rumor, sell on the news."

The quote "Buy on the rumor, sell on the news" implies a strategy for investing in financial markets, particularly stocks or other securities. Essentially, it suggests that investors should buy an asset when there are positive rumors about its potential future performance or growth, but before any concrete evidence or official news has been confirmed. The rationale is that this early entry allows the investor to benefit from any subsequent upward price movement due to the confirmation of the rumored positive developments. Once the news becomes public, however, the price of the asset tends to increase further in the short term as a result of widespread awareness and demand. However, over time, investors may start to take profits or sell their holdings as they no longer see the same potential for growth that led them to buy initially. This is where the phrase "sell on the news" comes in – it suggests that after the positive news has been announced, it may be a good idea to sell and lock in profits before the asset's price begins to decline or stabilize. In summary, this quote emphasizes the importance of timing in investing, with an emphasis on buying assets based on early, unconfirmed information (rumors) and selling once the actual news has been announced. The aim is to profit from any initial upward price movement while minimizing exposure during periods when the asset's price may start to decline due to market saturation or overvaluation following the release of positive news.

"Every investment opportunity has a degree of risk, and you must decide if that level of risk is acceptable to you before investing."

This quote emphasizes the importance of understanding and accepting the level of risk associated with any investment opportunity before committing funds. It underscores the notion that every investment carries some degree of uncertainty, and each individual must assess their personal tolerance for that risk before making an investment decision. Essentially, it's a reminder that investing involves potential rewards but also potential losses, and individuals should make informed decisions based on their own financial goals and risk appetite.

"The road to riches is paved with the small change from thousands of investments, not the hope that a few will produce big returns."

This quote emphasizes the importance of diversifying one's investment portfolio through numerous smaller investments rather than relying on a few large ones in the pursuit of wealth. The "small change" refers to relatively modest individual investments, and the idea is that accumulating such investments over time can lead to substantial riches, as opposed to the unpredictable 'hope' that a few major investments will yield big returns. This quote encourages a thoughtful and methodical approach to investing for long-term financial success.