What’s the best thing to talk about when the market is firing on all cylinders? Recessions, of...
The Maxims of Wall Street
03/12/2014 9:51 am EST
Wall Street legend Mark Skousen, shares several investment sayings, made famous by experts like Warren Buffett, which appear in the third edition of his book, Maxims of Wall Street.
TERRY SAVAGE: I am Terry Savage from Money Show.com talking with one of the living legends.
MARK SKOUSEN: THE!
TERRY SAVAGE: The living legend on Wall Street, Mark Skousen, but before you change the camera angle, let me show you this. This is the third edition, leather bound, little book of the Maxims of Wall Street. You must get this for a gift for, I do not know, a high school graduate, college graduate or just anybody who cares about the markets. Mark Skousen, tell me about the Maxims of Wall Street.
MARK SKOUSEN: Well the third edition is the first edition that has you quoted in it, yes.
TERRY SAVAGE: Oh my gosh, you just handed this to me. I am really in here? It cannot be all smart people in there then.
MARK SKOUSEN: Yes, exactly. Look in the back, see where it is and while I am speaking about…
TERRY SAVAGE: All right, I am going to look. Tell me what is in here.
MARK SKOUSEN: Well we have over 800 quotes. Since 1992, I have been compiling all the Wall Street sayings like “sell in May and go away” and stuff like that. Warren Buffett, he is quoted and in fact endorsed the book largely because he is quoted more than anybody else. I have Jesse Livermore and Joe Kennedy.
TERRY SAVAGE: I found where you put, quick move the camera.
MARK SKOUSEN: Pretty good about the women and divorce or what was it.
TERRY SAVAGE: All right, here is mine. If you marry a rich man beware, either they do not stay rich or they do not married.
MARK SKOUSEN: Yes, isn’t that a great quote.
TERRY SAVAGE: Well okay, I said that before. I have tried that before actually.
MARK SKOUSEN: I should have put the Savage number in there or something like that.
TERRY SAVAGE: The Savage truth, all right, but that is terrific.
MARK SKOUSEN: That is actually a very profound statement, if you think about it.
TERRY SAVAGE: Oh it is. Believe me, I know it for sure. The Maxims of Wall Street available on Amazon.com and Mark Skousen.com.
MARK SKOUSEN: Right, right, of course.
TERRY SAVAGE: Some of these maxims contradict, Mark.
MARK SKOUSEN: Yes they do.
TERRY SAVAGE: Buy low and sell high or let your profits.
MARK SKOUSEN: One of them is really good. One fellow, I cannot remember his name, he says, “The most important thing about a stock is that the price goes up.” Warren Buffett quotes just the opposite, “The worse thing that you can invest in is just because a stock goes up. You need to go much deeper than that.”
TERRY SAVAGE: So how do you know who to believe?
MARK SKOUSEN: You know I leave that up to the reader. Most of them do and they are consistent with that, for example money managers. I have Woody Allen saying, “I am a money manager. I invest your money until it is all gone.” You know very funny Bernie Madoff kind of statements, but I have others who talk about the profoundness of managing money, doing well and so forth. You do have these contradictions and I leave it up to the reader, I do not try to judge each quote.
TERRY SAVAGE: What is your favorite maxim of Wall Street? What is the one you find yourself saying most frequently?
MARK SKOUSEN: Well, my favorite one is found on page 34 there. I do not know if I can have it done by memory, but it basically says that when you are crying, you should be buying and when you are yelling, you should be selling. Now actually, I spell yelling y-e-l-l-e-n and notice that the market has struggled ever since it was announced that she would be the new Fed Chairman. I do not know if that has anything to do with it, but it is kind of a fun saying.
TERRY SAVAGE: The Maxims of Wall Street with Mark Skousen. I am Terry Savage from Money Show.com.
Related Articles on STRATEGIES
One sector that has treated us right is the small cap stocks, which we recommended towards the end o...
The market has been remarkably resilient; most U.S. companies are doing well, and the S&P 500 ap...
Aging economic recoveries and bull markets carry special risk for anyone who is too easily enamored ...