Collected Wisdom

I frequently share with readers quotes, aphorisms and other 'stuff' that I run across. I occurred to me today to treat this as a "Permanent Post" to serve as a ready reference. This is a an ongoing list. If readers have favorites, please post them in the comments to included the source (title, author, publisher, date, page number), and I'll upload them here.

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Psychology of the Stock Market G. C. Selden (available for free on Google's Books online); 1912, Fraser Publishing Company 1965;

• Our big capitalists are seldom entirely out of stocks. They merely have more stocks when prices are low and fewer stocks when prices are high. (p.16)

• To a great extent we train our judgment to lend itself to our selfish interests. . . . We cannot work for our own interests as in other lines of business--we can only fit our interests to the facts. . . To make the greatest success it is necessary for the trader to forget entirely his own position in he market, his profits or losses, the relation of present prices to the point where he bought or sold, and to fix his thoughts upon the position of the market. (p.57)

• The great cause of loss in times of panic is the failure of the investor to keep enough of his capital in liquid form. (p. 71)
  

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Historical parallels are likely to be misleading. Every situation is new, though usually composed of familiar elements. Each element must be weighed by itself and the probable result of the combination estimated. In most cases the problem is by no means impossible, but the student must learn to look into the future and to consider the present only as a guide to the future. Extreme prices will come at the time when the news is most emphatic and most widely disseminated. When that point is passed the question must always be, "What next?". (p. 54)

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The main point of their argument is that the state of mind of a man short of the market is radically different from the state of mind of one who is long. Their whole study, in such a conversation, is the mental attitude of those interested in the market. If a majority of the volatile class of in-and-out traders are long, many of them will hasten to sell on any sign of weakness and a decline will result. If the majority are short, they will buy on any development of strength and an advance may be expected." (p. 9)

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The Book of Five Rings
Miyamoto Musashi
Translated by Thomas Cleary, 1993; 1997 Barnes & Noble Books

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Two essential elements of ancient martial and strategic traditions:

• The first of these basic principles is keeping inwardly calm and clear even in the midst of violent chaos;
  

• The second is not forgetting about the possibility of disorder in times order.

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Harmony and disharmony in rhythm occur in every walk of life. It is imperative to distinguish carefully between the rhythms of flourishing and the rhythms of decline in every single thing.

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1. Think of what is right and true.
2. Practice and cultivate the science.
3. Become acquainted with the arts.
4. Know the principles of the crafts.
5. Understand the harm and benefit in everything.
6. Learn to see everything accurately.
7. Become aware of what is not obvious.
8. Be careful even in small matters.
9. Do not do anything useless.

I found this on line link to another translation which you can find here: http://www.samurai.com/5rings/

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The Book of Family Traditions on the Art of War
Yagyu Munenori
Translated by Thomas Cleary, 1993; 1997 Barnes & Noble Books

There is a science to the use of arms. If you try to kill someone without knowing the science, you will probably get killed yourself.

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When fighting with enemies, if you get to feeling snarled up and are making no progress, you toss your mood away and think in your heart that you are starting everything anew. As you get the rhythm, you discern how to win. This is "becoming new." (p.46)

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On Becoming a Leader
Warren Bennis
1989, Perseus Books

How can you best express you?

The first test is knowing what you want, knowing your abilities and capacities, and recognizing the difference between the two.

The second test is knowing what drives you, knowing what gives you satisfaction, and knowing the difference between the two.

The third test is knowing what your values and priorities are, knowing what the values and priorities of your organization are, and measuring the difference between the two.

The fourth test is - having measured the differences between what you want and what you're able to do, and between what drives you and what satisfies you, and between what your values are and what the organization's values are - are you able and willing to overcome those differences. (pp 123-127)

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Here's a quote from George Soros that I first published in November of 2007 courtesy of Isiah 6:4

“Economic history is a never-ending series of
episodes based on falsehoods and lies, not truths. It represents the
path to big money. The object is to recognize the trend whose premise
is false, ride that trend, and step off before it is discredited."

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In the time of war
Raise in yourself the Mind of Compassion
Help living beings
Abandon the will to fight
Wherever there is a furious battle
Use all you might
To keep both sides' strength equal
And then step into the conflict to reconcile.

Vimalakirti Nirdesa


Justin Mamis
When to Sell

From Mamis in "When to Sell"

Knowing where you are in a market cycle is vital to any intelligent market approach.  Sure, you have to weigh what the bears are worried about, but so long as youu have the proper perspective on what has to happen to prove their case--and what has to happen to prove the alternative--you can proceed wisely.  p.98