Gerald Loeb (1899-1974) was a founding partner of E.F. Hutton & Co. a well-known Wall Street brokerage.
He began his career in 1921 in San Francisco and moved to New York in 1924.
He largely escaped the Great Crash of 1929 but it did affect his trading philosophy, making him extremely sceptical of buying stocks and holding for the long term.
Gerald Loeb said:
"You don't need analysts in a Bull Market,
and you don't want them in a Bear Market"
Forbes Magazine referred to Gerald Loeb as: "the most quoted man on Wall Street."
Here are a few of his sage words:
"The safest investments of all are more often than not in stocks that have gone up, are going up, seem high, but continue to go up.”
“The really good stocks almost always seem overpriced. It requires discipline to make yourself pass up the low-priced “bargain” and buy seemingly high-priced growth.”
“If you invest all your funds at once, you must be very expert to select just the right time”
Loeb wrote. “If you hold funds back and invest a fraction, say 10 percent, or 20 percent when available, and a second fraction a month or two or three later or on some seemingly favorable market juncture, you reduce risk.”
“It is usually better to err in selling too soon than not to sell at all,”
“One of the considerations in determining a selling spot is to sell on great strength and not wait for trouble to spur you to liquidate.”
Here are some of Loeb's quotable quotes:
"In addition to many other contributing factors of inflation or deflation, a very great factor is the psychological. The fact that people think prices are going to advance or decline very much contributes to their movement, and the very momentum of the trend itself tends to perpetuate itself"
"Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival"
"Profits can be made safely only when the opportunity is available -- and not just because they happen to be desired or needed"
"There is a saying: 'A picture is worth a thousand words.' One might paraphrase this by saying a profit is worth more than endless alibis or explanations. . . prices and trends are really the best and simplest indicators you can find"
"The difference between the investor who year in and year out procures for himself a final net profit, and the one who is usually in the red, is not entirely a question of superior selection of stocks or superior timing. Rather, it is also a case of knowing how to capitalize successes and curtail failures"
"Accepting losses is the most important single investment device to insure safety of capital"
The Gerald Loeb Award, which is also known as the Gerald Loeb Award for Distinguished Buiness and Financial Journalism is given to individuals in recognition of their contribution to journalism in business, finance and the economy.
It was inaugurated in 1957 in an attempt to encourage reporters to help private investors and the general public by reporting on issues that affect their well-being.
The award is sponsoredby the Loeb Foundation andis regarded as the highest award in business journalism. There are now ten award categories, including magazine, newspapers, and television. Winnders receive a cash sum and a prestigious award.
Gerald Loeb authored three books and was considered a very competent writer. He had a knack of breaking down complex tasks into simple language.
The Battle for Investment Survival by Gerald M. Loeb
First published in 1935 this book sold 200,000 copies during the Great Depression.
The book was updated in1957 and again in 1965 to bring it up-to-date with both the market and his own methods.
You can get a copy of this much sought after classic by clicking on the link below:
The Battle for Stock Market Profits by Gerald M. Loeb
It was not until 1971 that Loeb published a follow-up to his first book, in this book he dscribed the market as being like a battlefield.
Get your copy of this classic by clicking the link just below:
Your Battle For Stock Market Profits (Formerly 'The Battle For Stock Market Profits) by Gerald M. Loeb
Grab this latest publication of Gerald Loeb's classic book. Just click the link below:
The Wizard of Wall Street by Ralph G. Martin
The story of Gerald Loeb as told by Ralph Martin.
Martin discusses Loeb's marketing philosophy that gained him a reputation as "a man who has been outsmarting the market for years."
Gerald Loeb was, what we would call today, a contrarian.
He avoided crowd thinking but observed what they did, and then made his own mind up.
He was never afraid of taking a profit (or a loss). He would never have got out at the top nor in at the bottom. His methods wouldn't let him do that.
He was a shrewd investor and a wise advisor.
The fact that his books sold well in a depression speaks valumes. And so too does the fact that they still sell well.