But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
Warren BuffettRelated topics
buying effect expect fall final five future happy hope lower market near net next now period prospective reaction rejoice rise saver seeing sense should sinking stock wrong years exam higher sellers stocksRelated quotes
I have an expectation that there'll be a cooling in the existing market. But as I say, our view that we absolutely maintain is that we're bringing on-stream a section of the housing market that is undersupplied and that we don't expect to see a dramatic drop in people's housing values. [...] At the moment it's cooling because we're seeing potentially that easing off by meeting the fact that we're easing off a bit of demand. It's not clear whether or not that will be sustained. We believe that if we want to make sure we're addressing the issues we have, it is about addressing supply as well.
Jacinda Ardern
The natural effect of unfettered market competition is socialism. For a short time the innovator receives a large profit, as a reward for being first to the market. Then, as competitors adopt the innovation, competition drives these profits down to zero and the price gravitates toward the new, lower cost of production made possible by this innovation (that price including, of course, the cost of the producer's maintenance and the amortization of her capital outlays). So in a free market, the cost savings in labor required to produce any given commodity would quickly be socialized in the form of reduced labor cost to purchase it.
Kevin Carson
When a body is let fall from a higher position to lower one, it has, at the instant when it is let go, energy of motion; but it gains, in falling, as much energy of motion as it loses energy of position. It is found that the sum of energy of motion and energy of position is always constant. ...Energy is a quantity which can be greater or less but has no direction. ...This constancy is expressed by including them in common name of Energy, and saying that energy is conserved, or is indestructible. This form of speech might be applied to other cases of alternate immortality, where one of two things comes into existence on disappearance of the other.
William Kingdon Clifford
In manufactures, a very small advantage will enable foreigners to undersell our own workmen, even in the home market. It will require a very great one to enable them to do so in the rude produce of the soil. If the free importation of foreign manufactures were permitted, several of the home manufactures would probably suffer, and some of them, perhaps, go to ruin altogether, and a considerable part of the stock and industry at present employed in them, would be forced to find out some other employment. But the freest importation of the rude produce of the soil could have no such effect upon the agriculture of the country.
Adam Smith
One is constantly reminded of the infinite lavishness and fertility of Nature - inexhaustible abundance amid what seems enormous waste. And yet when we look into any of her operations that lie within reach of our minds, we learn that no particle of her material is wasted or worn out. It is eternally flowing from use to use, beauty to yet higher beauty; and we soon cease to lament waste and death, and rather rejoice and exult in the imperishable, unspendable wealth of the universe, and faithfully watch and wait the reappearance of everything that melts and fades and dies about us, feeling sure that its next appearance will be better and more beautiful than the last.
John Muir
