A Cause A Day Keeps Reality Away

Admittedly, every one of us has our own personal reality, and knowing true reality is something for philosophers. Nevertheless, if we are open-minded, we can understand enough of other people's realities to come closer to understanding the collective reality that governs the stock market, which is good. Contrarily, if we are too wrapped up in causes, we are liable to be blinded to the reality of others and commit grave investment errors. (Note: this is the only quote attributed to Jim Fraser, and I've been unable to determine where he originally published it.)

A Flood Tide Leads To Fortune But There Is No Tide Table

The flood tide is the major market trend in a bull market. In the 1990s it was technology and Internet stocks. In the 2000s it was Chinese and other emerging markets stocks. Every one of these major trends goes to extremes, persisting far longer than observers expect. But there is no schedule that can predict these major trends, and thus the only sure system is the one that observes the trend and stays in synch with it.

ACT Not React

The capitalization of the first word on this button is quite unusual, as is the ungrammatical nature of the phrase; "Act, don't react" would be proper. Nevertheless, the sentiment is clear. If we only react, we will always be followers. Contrarily, if we think intelligently for ourselves, we can anticipate and thus sometimes find ourselves at the front of the parade.

All Is Not Lost That Is In Peril

A perfect contrary sentiment (and one repeated in several other phrasings) this button reminds us that worry can be a good thing. If an investment is viewed to be in peril, it may well have already been pushed down by investors selling in fear, and thus be much closer to a bottom than a top.

All Is Not Lost Until All Succeeds

Cryptic, this one is, and contrary, to be sure. What it means is that when all has succeeded, then it is time to worry, for when there are no problems, and when everyone thinks everything is rosy, then all buyers will have bought stocks. At that point, there will be no more fuel available to push stocks higher. Furthermore, there will be no way for perceptions to improve. Perceptions will worsen and stocks will fall. The classic example in recent history was the first quarter of 2000, when we had successfully come through the millennium Y2K scare and the consensus was that the Internet would solve all our problems. As most investors know, technology stocks led the way down shortly after.

America A Land Of Enormous Impossibilities

It means the opposite, of course. It means that every enormous success came about because someone--a risk-taking, highly motivated person or company--worked hard to find a solution where everyone else had seen only impossibilities. For centuries, America has been the most entrepreneurial culture in the world, and our main hope for continued success is that we continue to nourish and motivate our creative, entrepreneurial culture.

Assets Segregate Liabilities Accumulate

Many people learned the second part of this the hard way in 2007 and the years that followed when the over-leveraged U.S. housing market collapsed, dragging the developed world into a global recession. As to the first part, it's been expressed in more common language as "A fool and his money are soon parted."

Avoid The Tyranny Of Inflated Expectations

It's OK to dream; just don't expect your dreams to always come true. If you start with realistic, reasonable expectations, chances are good you will achieve your goals. If you let your wildest dreams dictate your actions, you'll be forced into unwise actions. Chasing rainbows brings only disappointment.

Avoided Values Are Best Buys

To find treasure, you've got to look in places others avoid: the nuclear power industry after the Three Mile Island accident; Johnson & Johnson after the Tylenol scare; Ford Motor after the collapse of the over-leveraged auto industry in 2008. It takes a real contrarian (or at least an independent thinker) to invest against prevailing opinion, but that's where the greatest bargains are.

Bad Decisions Make Good Stories

This sentiment, which has become popular recently, recognizes at least the entertainment value of bad decisions. Veteran investors know that the greater value of failure lies in the learning that comes from these events. We learn from our mistakes.

Be Brave To Expect The Crowd To Be Wrong

A classic contrary sentiment. When the last fool in the crowd buys, the market tops; when the last fool in the crowd sells out in capitulation, the market bottoms. And it will always be so. Your job is to learn to recognize the actions of these fools and then lean the other way.

Be Not A Jelly of Convictions

This is one of the more challenging buttons. Its greatest value perhaps lies in its potential to stimulate the formation of a mental picture of jelly, into which a cook has mixed "convictions." My best interpretation is that when more than one conviction is involved, contradictions can arise, and leave you confused, trying to serve more than one master. (Note the illustration on the button, of a man on a pier throwing a rope to the floundering man.)

Being Rich is Having Money; Being Wealthy is Having Time

An Internet search attributes this quote to Margaret Bonanno, a science fiction writer who has written six Star Trek novels as well as several set in her own worlds. At first blush, it is perhaps too accessible. Looking deeper, we find that the message that we might have more time if we spent less of it caring about money.

Better Eccentric Vagaries than Commonplace Dullness

Dickson G. Watts was president of the New York Cotton Exchange from 1878 to 1880, and in his book "Speculation as a Fine Art and Thoughts on Life," he wrote, "Better the vagaries of eccentricity than commonplace dullness." True in so many facets of life, it can make you a better investor as well. The common man runs with the herd, buying at tops and selling at bottoms; the eccentric succeeds by doing the opposite.

Buy Sheep Sell Deer

A corruption of "Buy cheap, sell dear," and more fun to illustrate, too. The deer looks English to me. More common today is, "Buy low, sell high."

Chance Prefers A Prepared Mind

The original phrase, attributed to Louis Pasteur, was, "Dans les champs de l'observation, la chance ne sourit qu'aux esprits bien prpars." Google's translation software (reputedly the best) turns it into "In the fields of observation, luck smiles only prepared mind." Cleaning it up, I make it, "In the fields of observation, fortune smiles only on the prepared mind." Sadly, English translations have long used the word "favors,"(not "prefers"), when in fact Pasteur meant "smiles on,"and reinforced it with "only." The point, in any case, is that the unprepared mind can find no fortune in the fields of observation-which include the stock market-because it understands not what it sees. Only the prepared mind can observe and accurately interpret, and thus make the decisions that lead to fortune.

Character Is Destiny

Attributed to the Greek philosopher Heraclitus. Maybe your mother taught you this ... or maybe your priest, minister, rabbi, etc. Character refers to those moral qualities, ethical standards and principles that "ideally"guide our decisions. Most of us have room for improvement.

Common Sense Ain't Common

Popularized by Will Rogers, whose humorous wisdom resonated with the common man. It reminds us that real common sense comes from thinking differently from the common man at times of mass irrationality. When the common man believed Internet stocks would go to the moon in 2000 ... when he believed Bernie Madoff was a genius ... and when he believed in late 2008 that America's financial system might actually fail ... at all those times, he lost his common sense because his thoughts melded with those of the irrational crowd ... and he paid the price.

Concern Yourself Least When Others Fear Most

This is classic, and so very valuable, for two reasons. The first is that danger is least and bargains are most plentiful when the crowd is most fearful. The second is that you won't recognize those bargains unless you've made an effort to resist the concerns of the psychologically unified crowd. It also reminds us there's no need to worry about what everyone else is worried about ... whether it's unemployment or interest rates or terrorism.

Consensus Conclusions Create Careless Consequences

Clever. It means simply that groupthink can never bring aboveaverage performance. Decades ago, the marketing people at IBM popularized the phrase, "No one ever got fired for buying IBM equipment." Trouble is, those people who opted for the safety of the herd never got beyond middle management.

Consideration Is The Sign Of Wisdom

Consideration, in its most basic form, means simply the act of careful thought, reflection and deliberation, exactly what you would want from a Supreme Court Justice. If consideration leads to wisdom, wisdom can lead to successful investments.

Courage Is Not Cautious

Courage, properly informed, comes from the cultivation of a perspective that is different from that of the "cautious" crowd, and such courage is extremely valuable for investors.

Distrust Any Enterprise That Requires New Clothes

The actual quotation, from Henry David Thoreau, is Beware of all enterprises that require new clothes, and not rather a new wearer of clothes. Thoreaus focus was on the person, not the clothes. For investors, the button is a reminder that we humans are fallible, and that success comes from improvement of ourselves, rather than the adoption of new investment vehicles and techniques.

Do Not Pander To Your Prejudice

To pander is to cater to the base passions of others, or even indulge one's own. And if prejudices, frequently irrational, are pandered to, clearly no long-term good can come of it. To be a successful investor, the rational mind must rule.

Do Not Project Prejudice Into The Process

A simple admonition to confine your thinking to the facts, while keeping personal biases at bay. Amateur investors typically fail because they haven't learned to separate facts from personal beliefs.

Do Not Purchase Regret At Any Price

This is one of my favorite buttons. You don't set out to purchase regret, of course; you set out to purchase a stock. Yet depending on

what happens while you own the stock, you may come to regret that purchase. The button means only that you should have an exit plan that guarantees either success or acceptable loss in a specific time frame.

Do Not Scratch The Stock Will Hatch

Cute. A simple plea to the value investor for patience. Of course, the button is true only if those stocks have been properly analyzed. Conditions can change, and value investors do sometimes need to reconsider and sell at a loss.

Don't Confuse Brains With A Bull Market

Attributed to Humphrey Neill, who founded the Contrary Opinion Forum in 1963. When the profits pile up in the latter stages of a bull market, it's easy to think your superb analytical skills are responsible. But the experienced investor knows the danger of hubris. He knows to give the bull market most of the credit ... and he remembers that when the bull turns to bear, and 95% of stocks turn down, cash will be more valuable than all his brainpower.

Don't Cry
Created by a child of Alex Seagle, current co-owner of Fraser Management, which created all these buttons. Note the spilled milk.

The point is that you shouldn't obsess over past mistakes or bad luck. Learn and move on.

Doom & Gloom Sells Optimism Pays

In the news biz they say, "If it bleeds, it leads." People are attracted to bad news, especially when it's happened to others. Good news, on the other hand, is boring, and it doesn't sell newspapers. But to be a good investor, you've got to look for the good news, even learn to anticipate the good news, as optimists do. That's because stocks go up more on the anticipation of progress than on the news of progress.

Doubt All Before Believing Anything

The original quote, by Sir Francis Bacon in "The Advancement of Learning,"is this: "If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts he shall end in certainties." The condensed version above can be traced to Humphrey B. Neill, who in his book, "Tape Reading and Market Tactics,"wrote, "As Sir Francis Bacon wrote nearly three hundred years ago: Doubt all before you believe anything! Watch your idols!". In any event, this button tells us that skepticism is a valuable trait that can ideally lead to further knowledge.

Education Is Expensive But Try Ignorance

Derek Bok, former president of Harvard University, said, "If you think education is expensive, try ignorance,"but whether he is the originator of the sentiment is debatable. In any event, since this button was created decades ago, the cost of a college education has skyrocketed ... and it's still cheaper than ignorance

Excitement Is Highest As The Roller Coaster Goes Over The Top

Cabot founder Carlton Lutts loved this one; he wore it on his jacket with some regularity. The lesson: When everyone's excited, the market's usually near a top, at least shorter-term. As I write this, I can clearly remember the euphoric state of mind of my colleagues and customers at each of the past five major market tops. And just as clearly, I know that state of mind will recur at the next major market top. When it comes, you should mentally begin to prepare for the coming bear market.

Fashions and Fads Are Skilled Masters of Enthusiasm

Remember how excited investors were about Iomega? Taser? Crocs? Every one of these stocks had a huge bull run, as sales and earnings expanded and investors' expectations of the future were ratcheted higher and higher. And every one of these stocks collapsed when investors realized their projections were overly optimistic, and that

these fads, like others, would pass. The best growth stock investors are happy to ride the wave of fashion as it is building, but they're quick to exit when a stock falters, knowing that enthusiasm can cool quickly.

Foolishness Of The Many...Opportunity For The Few

When the crowd is most foolish, at market tops and bottoms, are when the biggest opportunities are presented for independent-minded investors. In late 2008, for example, as General Motors was going bankrupt, you could have bought Ford stock for a dollar and change. At the other end of the scale, back at the top of Internet mania in 2000, you could have sold Yahoo! for 125. So keep an eye on the sentiment of the crowd. In Dickson G. Watts' little book, "Speculation as a Fine Art and Thoughts on Life,"we find the quote, "The foolishness of the many is the opportunity of the few."

Good Questions Outrank Easy Answers

Attributed to Paul A. Samuelson, the first American to win a Nobel Prize in economics.

In my mind, the big questions for investors include these: What's the major market trend? What's the state of investor sentiment? What's the weakest stock in my portfolio, and what should I do about it? Even if you can't answer these questions definitively, it's important to ask them ... more important than answering the easy questions. And when you can answer these questions correctly, and act wisely as a result, you'll be a better investor.

Greed Is The Root Of All Evil

Some say money is the root of all evil; others say lack of money. But the original sentiment, supposedly expressed by St. Augustine, was that "love of money"or "greed"was the culprit. In the stock market, where the twin emotions of fear and greed have long ruled, this is often true. Greed is what entices amateurs to enter the market near bull market tops. Greed is what makes people buy on margin when they can't handle the risk. And greed is what drives people to invest in stocks they don't understand

Happiness Is Looking In The Mirror To See Your Boss

Psychologically, most of us benefit from a feeling of control, from the ability to make choices, from the ability to influence the course of our lives ... and being your own boss brings that. Of course, it also brings added responsibility, but if you can handle that, being the boss is miles better than having one.

He Was A Bold Man Who Ate An Oyster

The words are from Jonathan Swift, who actually wrote, "He was a bold man that first eat an oyster,"and declined to explain further, no doubt thinking it unnecessary for the simple sentiment. Oysters are a marvelous delicacy, yet visually off-putting; thus the idea is that courage was required to discover the treasure. (Try as I might, I can't ignore the fact that oysters were doubtless enjoyed by primates long before those primates evolved into men.)

In Case Of Doubt Sound Convincing

The original quote, apparently born in the ivory towers of scientific academia, was, "In case of doubt, make it sound convincing." That it can work for a salesman is obvious, but how does it work for investors? Like this. When everyone knows something about a stock, it's too late to invest based on that fact; the price of the stock reflects that knowledge. It's only by investing in things about which there is doubt (like next quarter's earnings) that you can succeed. To do that, you've got to wrestle with doubt, use rational thinking to project the future, and then invest with confidence, whether you talk about it

convincingly or not. Note: This is the only non-circular button in the entire collection.

If It Is To Be It Is Up To Me
Attributed to William H. Johnsen, this quote is composed entirely of two-letter words. It says take responsibility, take charge, and stop waiting for someone else to do the job. When it comes to investing, Cabot's business is to make recommendations, but the fact is it's going to be you who actually makes the decision to buy and sell a stock. And it has to be you who realizes your own strengths and weaknesses as an investor, and makes the decisions that are right for you.

If You Have All the Answers You Don't Understand The Questions
This button reminds us that there are things that are unknowable, that we should remain humble, and that searching for alternative questions that result in answers that are different from our own can yield new insights.

If You've Always Done It That Way, It's Probably Wrong

Attributed to Charles F. Kettering, head of research for General Motors from 1920 to 1947. This quote reminds us that the only constant is change, and that any process that isn't being constantly improved probably should be

It Pays To Be Contrary

Attributed to Humphrey B. Neill, founder of the Contrary Opinion Forum. If you can be a buyer when everyone else is selling, and then be a seller when everyone else wants to buy, you'll be rich

It's The Early Worm That's Gotten

This, of course, is the companion button to "The early bird gets the worm." It reminds us that being too early can be dangerous, whether you're skiing on an avalanche-prone slope just after a big snowfall or venturing into a falling stock at what you hope is a bottom.

Knowledge Speaks, But Wisdom Listens

Amazingly, this quotation is widely attributed to Jimi Hendrix (1942-1970) ... but there is no actual proof that he either said it or wrote it. There is, however, proof that Oliver Wendell Holmes (1809-1894) wrote, "It is the province of knowledge to speak, and it is the privilege of wisdom to listen." It is tempting to see these as dichotomies, existing in two different people, but I prefer to believe that both qualities may be contained in one person, and that the true wise and knowledgeable person will speak when sharing knowledge is appropriate, and listen otherwise.

Let the Mind Go Where It Will

This doesn't mean you should daydream. It means you should follow your thoughts and ideas to their logical conclusions, especially when they lead to roads less traveled. The best investments are often the ones that Wall Street has not yet discovered. Original thinking is difficult, and that's precisely why it can be very rewarding.

Life Is Understood Backwards Lived Forwards

Danish philosopher Soren Kierkegaard said, "Life can only be understood backwards, but it must be lived forward." Hindsight is 20/20, but because we cannot undo the past, we can only learn from it and hope to apply those lessons going forward. The good news is that even as the world moves forward, the world of investing moves in identifiable patterns that are based on human nature ... driven by fear and greed. And the more you pay attention to the actions of the market and the mood of its participants, the more you can use the experiences of the past to profit in the future

Live In Worry Lose In A Hurry

Worry is a negative emotion, and crowds out the rational thinking that is required to be a successful investor; the result can be quick losses. To me, the antidote for worry is education, knowledge and, if appropriate, action.

Many Read Few Turn The Page

This is one of the oldest buttons in my collection (I remember my father wearing it years ago), and until 2009, the only one not in a "normal" font. It means that acquiring information is easy, but that actually doing the thinking that allows understanding is difficult, and practiced by relatively few people.

Furthermore, most people read only as much as they need to make sense of things. Few continue reading when new information may contradict cherished beliefs or raise new questions.

Money Goes Where It's Treated Best

My father often used this phrase when writing about the effect of interest rates on the stock market. When interest rates rise (he would write), money is gradually drawn out of the stock market, as the rewards of bonds and other interest-paying instruments increase. And when interest rates fall, money leaves those instruments and flows back into the stock market. This, of course, is a very simplistic explanation; interest rates have numerous interrelated effects. Nevertheless, it's true. But I would amend the saying, to "Money Goes Where People Think It's Treated Best." And it works for individual stocks, too. Growth investors can do well by following the institutional money, because professionals are putting it where they think it will be treated best. Walter Wriston, CEO of Citibank from 1967 to 1984, said "Capital will flow where it is wanted and stay where it is well treated."

Necessity Breeds Attempt

A mash-up of "Necessity is the mother of invention" and "Familiarity breeds contempt," it means exactly what it says. Whether it can make you a better investor is debatable.

Never Doubt What Nobody Is Sure Of

This button-one of five Contrary Opinion buttons that include the word "doubt"-says you should beware the opinion of the crowd, and vice-versa. In this case, if the crowd is not sure of something (the growth prospects of a stock, for example), yet your own analysis tells you the future is bright, you should have no doubt. Trust your own analysis. The quote is from Willy Wonka & the Chocolate Factory, by Roald Dahl

Never Speak More Clearly Than You Think

Credited to physicist Jeremy Bernstein, this advice is appropriate for any field, save perhaps acting and TV newscasting (often the same thing). In the field of investing, clear rational thinking is required, and any time you make an effort to color that, you risk misleading not only your audience but also yourself. More bluntly, it's been said, "If you don't know what you're talking about, shut up."

1984 by 1984

The digital font of the first number tells you this button was likely created in the early 1970s, and from that we get a clue to its meaning-that the "modern world," meaning at least the widespread use of computers and possibly the evolution of the oligarchical collectivist society as depicted in George Orwell's novel, might arise within the next decade. Happily, it didn't, and the major factors behind successful investments remain unchanged

No Matter Where You Go There You Are

Attributed to Confucius, but popularized by Buckaroo Banzai, it means what it says. You can't run way from yourself, so it's worth taking time to master yourself. And in investing, this is critical, because it's your own human foibles that are the biggest obstacles to investment success

Only Dead Fish Go With The Flow

This thought is rooted in religion; when The Right Reverend Robert Daly in 1826 said, "live fish swim against the stream, while dead ones float with it," the sentiment was already a classic. In the 20th century, Malcolm Muggeridge was notable for commenting, "Never forget that only dead fish swim with the stream." Going with the flow is a far more recent coinage. In any case, it reminds us that to be a successful investor, you can't just float along; you've got to do the work. And to be a contrarian investor, you've got to do the uncomfortable thinking that leads you to swim against the flow of popular opinion.

Patience Is Sustained Courage

Found in the book "Speculation as a Fine Art and Thoughts on Life" by Dickson G. Watts, this quote transforms patience from a passive enterprise to an active one ... and thus endows patience with a greater respectability. To an investor, patience can often be extremely valuable. In bull markets, you want to hold your winners, so your profits compound. In bear markets, you want to keep some cash patiently on the sidelines, waiting for conditions that are supportive. And sometimes, you just want to sit and watch a stock for a while, to see if it behaves the way your analysis tells you it will.

Patience Precedes Profits

Alliterative and simple. Patience means waiting to buy until a growth stock sets up in a high-potential pattern. Patience means waiting to buy until your value stock gets cheap enough. And patience means holding patiently as your stock climbs, until you get an exit signal.

Pride Of Opinion ... Precedes A Fall

Proverbs 13:10 says, "Pride goeth before destruction and an haughty spirit before a fall." The ancients were concerned that such overreaching insulted a higher power, but we know today that the main danger is psychological. Hubris can lead to errors of judgment, and your best defense against your own human fallibility is a humble spirit and an investing discipline that controls your risk. Just as speed kills, overconfidence can bankrupt.

Problems Are Opportunities In Work Clothes

Henry J. Kaiser, American industrialist and namesake of Kaiser Permanente, the first health maintenance organization, actually said, "Problems are only opportunities in work clothes." I like to call them challenges. In any case, the message is that you should not let problems defeat you; instead you should approach

them with a positive attitude aimed at finding a resolution and ultimately turning the situation to your advantage

Proper Prior Preparation Prevents Poor Performance

It has the same number of "Ps" as "Peter Piper picked a peck of pickled peppers," as well as no words that don't start with "P." And it touts the value of preparation. Can't argue with that.

Public Opinion Is the Scarecrow of Society

Attributed to Dickson G. Watts, president of the New York Cotton Exchange from 1878 to 1880, who wrote "Speculation as a Fine Art and Thoughts on Life," this cryptic button, like many from the Contrary Opinion Forum, points to the value of standing apart from the herd. Public opinion reinforces the fears that prevent most investors from harvesting the fruits of the garden. Yet public opinion is no more than a man made of straw.

Push Yourself Beyond Conflict and Complacency

For a long time, I didn't understand this button. I knew that complacency was to be avoided; only sloths sit happily and do nothing. But what about conflict? I finally realized that truth, wisdom and investment success were found, not in union with others' opinions or in opposition to others' opinions but in independence-even isolationfrom them.

Rigidly Defined Areas Of Uncertainty And Doubt

The original phrase, by Douglas Adams in The Hitchhiker's Guide to the Galaxy, was "We demand rigidly defined areas of doubt and uncertainty." It's uttered by a philosopher who argues that the Quest for Ultimate Truth is the inalienable prerogative of working human thinkers, and not suitable for computers. In investing, there are facts, which relate to the past, and there's doubt and uncertainty, which characterize the future ... and which you can only go wrong by trying to know

Some Things Have To Be Believed To Be Seen

It's by Ralph Hodgson, an English poet, and I love it. It reminds me that truth is personal, that a closed mind may not see, and that more truth can be discovered if a mind is prepared to accept it. On the surface, this may sound too philosophical to be of value in the field of investing. However, I think it's perfectly appropriate, especially as regards keeping an open mind about what might come next. It also works in regard to the power of charts. Non-believers simply don't understand their power to reveal the forces at work in the market, while those who understand would sooner invest according to the charts alone than by fundamentals alone.

Sometimes Wrong Never In Doubt

My father often quoted this popular sentiment, and that irked me, because I believed he was often guilty of overconfidence. As I grew older, however, I learned to appreciate the value of the man who could hold his convictions so tightly. You have to pull the trigger sometime, and he who hesitates is lost.

Success Has Many Fathers Failure Is An Orphan

Who said it first is unknown. But it's widely accepted, because it's true. I don't think you can use it to be a better investor, but when people claim to have bought a big winner way back when it was cheap, you

can remember that they've conveniently forgotten to mention their losers.

Survival Is The Teacher Of Imagination

We all know "Necessity is the mother of invention." This appears to be its cousin, though I don't think it hits the mark as well.

Take Not Thyself Too Seriously

Good advice. It helps prevent the risks of hubris. It helps you maintain a disposition toward learning from others. And it makes you more enjoyable to other people.

The Darkest Hour Has Only Sixty Minutes

By Morris Mandel, an American Jewish educator, this button reminds us that troubles pass. As an investor, trouble for you may be a big bear market or a tiny news items that causes your stock to crater. Your job is to look beyond the trouble, remember that good times lie ahead, and take the actions to position yourself to benefit from them.

The Early Bird Gets The Worm

This proverb dates back to the 17th century-perhaps farther-and its value then is obvious. He who rose at dawn (or before) had first crack at the opportunities of the day. Today, with electricity enabling productive activity 24 hours of the day, some argue that the proverb is less relevant. As an early riser, I like it.

The Future Is Not What It Used To Be

Originally by Paul Valry, who wrote, "The trouble with our times is that the future is not what it used to be." Of course, it never was. The future is always idealized, while the present is messy. To an investor, the future is characterized by profits galore from his intelligent trades. However, when the future arrives, it's very likely to hold the same mix of experiences as today: successes and failures, triumphs and regrets

The Greatest Glory Is To Rise Every Time You Fail

It's been said by Clay Aiken, Nelson Mandela, Vince Lombardi and Ralph Waldo Emerson, to name a few ... and perhaps even by Confucius. The full quote is usually "Our greatest glory is not in never falling, but in rising every time we fall." In investing, what's important is that you minimize the pain from your failures, and you learn from them so that your failures grow less frequent and less costly

The Hand Dealt is Determinism The Hand Played is Free Will

Originally by Indian Prime Minister Jawaharlal Nehru, who wrote, "Life is like a game of cards. The hand you are dealt is determinism; the way you play it is free will." It makes sense to me. What's great about the investment world is that we are all dealt the same cards (ignoring the professionals with their super-fast computerized trading systems), so we all have equal opportunity to make brilliant, highly profitable investments

They May Be Right But That's My Opinion

This may be the most difficult button to interpret. One explanation is that by starting with the common phrase "they may be right" but then undermining that already-weak statement with the qualifying, "but that's my opinion," the button simply says, "Who knows?" If you've got a better explanation, I'd love to hear it.

Things Are More Like They Are Today Than They Ever Were

Credited to Dwight D. Eisenhower, the original phrase has an additional word at the end: "Things are more like they are today than they ever were before." In any event, its truth is unassailable. But what is its utility to investors? It reminds us that while market cycles rhyme, they don't repeat, and we should guard against the temptation to believe that today's market-and therefore tomorrow's-will mirror some market of the past.

Think For Yourself

This is my favorite button. In a world where news and information is increasingly plentiful, wisdom gained from time spent in real thinking grows relatively scarce, and thus more valuable than ever.

Those Who Buy at Tops Often Sell at Bottoms

Those who buy at tops, of course, have the biggest losses at bottoms, and thus they are most likely to capitulate. More broadly, those investors who are most susceptible to public opinion will be the last to buy (creating a top) and they will also be the last to sell, creating bottoms.

Time Is Round And Rolls Quickly

A lot of things connected with time are round: the earth, the moon, a watch, a sundial. And time is cyclical, by the solar cycle, the lunar cycle, and the earth's cycle. As to the speed of time, the older we get, the faster it seems to pass. The more we can be aware of these truths, the better we can appreciate and make use of the time we have today.

To Find New Truth Shake Off Old Prejudice

What Frederick the Great originally wrote was, "The greatest and noblest pleasure which men can have in this world is to discover new truths; and the next is to shake off old prejudices." The condensed version says something different, though it's not bad. For investors, the truth is always valuable, and if you find it by shaking off old prejudice, so much the better

Trend is Not Destiny

The quotation has been kicking around in the field of urban studies/environmentalism for decades. It was popularized by both Lewis Mumford and Rene Dubos. It was in a book by Albert Mayer in 1967. But Paul Valry appears to have written it first. In any event, when applied to the stock market, it tells us simply that trends do not go on forever. Trends do, however, tend to last longer and go further than originally expected, and you can make money knowing this

Uncertainty Is Not Chaos

In the field of Contrary Opinion, uncertainty and doubt are good things, because they allow truth to creep in. Certainty sometimes shuts out truth, and thus wisdom. Chaos means utter lack of order and unpredictability, and if that's your state of mind-or the state of the market-you'll be better off in cash until there is some order in both.

Unexpected Events Occur Frequently

This is simply a reminder that we cannot know the future, and thus our investment decisions should be made knowing that the future will likely unfold differently than we anticipate. Sometimes it's better than we expect, sometimes worse, but being prepared for a range of events and outcomes can only improve our investment results.

We Are All In This Alone

Assuming that "this" means investing, the saying means simply that you're on your own. Yes, you can take advice, from Cabot and others, but in the end, the decisions are yours alone. And that is true for all of us.

We Have Met The Enemy, And He Is Us

Walt Kelly first used the quote We have met the enemy and he is us on a poster for Earth Day in 1970, expressing his belief that we are all of us responsible for our myriad pollutions, public, private and political. For investors, the button is a clear reminder that we are our own worst enemies, continually allowing the mirror emotions of fear and greed to over-rule our intellect.

When Complacency Reigns We All Get Wet

This button is simply an alternate way of expressing the classic contrarian sentiment. When all is rosy and everyone is happy, that means that all investors who might buy stocks have bought stocks, and thus there is no more fuel to push stock prices higher. At that point, all it takes is a whisper of bad news, or even apprehension of bad news, for selling pressures to overpower buying pressures and start the market on a downward slide ... during which we all get wet (unless we quickly go to cash or sell short).

When It Looks Great It Is Too Late

Another way of expressing the classic contrarian philosophy, this applies to both individual stocks and the market as a whole. Buying when all the news is rosy, and when everyone knows it, means you might be buying at a top. So you've got to anticipate the future, as professional investors do, and buy when there is still doubt in the air.

When Wisdom Fails Luck Helps

It's true; sometimes an investor gets lucky. A company gets an unexpected takeover offer, or a competitor stumbles. But you don't want to depend on luck. Do your homework, and try to be wise

Who Knows What's Hiding In The Bushes

No one knows. The future is unwritten. All you can do is play the odds, by being aware of what investment systems work, by being aware of the fundamentals (past, present and possible-future) of the company you are investing in, and by being aware of what the charts are saying, about both the broad market and your particular stock.

Winds Blow Hard On High Hills

Just ask Tiger Woods, or Mark Sanford, or Elliott Spitzer, all of whom suffered widespread scorn when their "indiscretions" were publicized. Before their falls from grace, those men were on top of their respective worlds. And so it can be for the investor who stands on top of his own financial world thanks to wise investment choices, combined perhaps with a bull market and a certain amount of luck. When all seems perfect, that's the time to be on guard. The trip down can take less time than the trip up.

Wisdom Begins With Wonder

It's attributed to Socrates, and as a proponent of never-ending education, I like this one a lot. Of course, wonder is only the first step. After wonder come research, analysis, synthesis, experience and then (sometimes), wisdom

With Ease Investors Believe What Pleases

Successful investing is not easy. In fact, taking the easy route, the pleasant route, will, at best, provide only brief profits before it delivers painful losses. Far more profitable over the long run is the practice of taking the difficult route, the route that is contrary, the route where you'll find little encouragement and even less company. And it will always be so.

With Money To Burn One Finds A Match

If it's true, the best defense is to avoid being in a position where there's money to burn ... which means keeping your money working in the market, or at least earmarked to work.

Without Contraries Is No Progression

The full quote, by William Blake, goes, "Without contraries is no progression. Attraction and repulsion, reason and energy, love and hate, are necessary to human existence." In investing, this does not mean that for every winner there's a loser. That's only true in zero-sum games. In investing, where the long-term trend is upward, everyone can win (theoretically) in the long run. Where the saying does apply in investing is the simple fact that for every buyer, there's a seller. And that's worth thinking about before you make a trade. Ask yourself what the party on the other side of the trade might be thinking

Without Curiosity Conviction Is Stubbornness

In investing, you must always keep an open mind, because (as another button says) "Unexpected events occur frequently." So while conviction is a wonderful attribute, particularly if it's achieved via comprehensive research and it goes against the spirit of the crowd, it should never be so firm that it is blind to new information.

Worry Consumes The Spirit Of Action

Attributed to Hazrat Inayat Khan, who founded the London-based "Sufi Order of the West" in 1914, this quote reminds us that actions should be carried out with a pure conviction, and that worry clouds one's spirit, and by extension, perhaps, one's thinking

Your Ears Will Never Get You In Trouble

Attributed to Frank Tyger, who wrote, "Be a good listener. Your ears will never get you in trouble." That this is pertinent to many spheres of life is obvious. In the investment business, the more you talk, the less opportunity you have to learn. So listen. Be receptive to the wisdom of others ... including the wisdom of these buttons.