2 great investing quotes to help boost your wealth

How to choose between companies like Coca-Cola Amatil Ltd (ASX:CCL) and XERO FPO NZX (ASX:XRO).

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I'm a sucker for a great investing quote.

A great quote can give direction and clarity in our many moments of madness.

Quotes obviously resonate with people differently since we are all unique, but I wanted to share two that I find especially useful for guiding my investment approach.

The first is this:

"It pays to be a careful observer of the world around you"

To be honest I have no idea where this quote comes from. I've tried Googling it; nothing. Though it sounds a lot like something Peter Lynch would say. Or my Dad.

The quote aligns with Peter Lynch's philosophy of real-world, observational research. He has a quote along similar lines in his book "One up on Wall Street" which goes:

"If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighbourhood shopping mall, and long before Wall Street discovers them."

Being a careful observer will expose you to shifting patterns and new trends, along with the businesses behind them. For example, you might notice the increasing dominance of health products from Blackmores Limited (ASX: BKL) on supermarket shelves.

It can also help you detect early market declines, like if your friends or colleagues stop buying products from Coca-Cola Amatil Ltd (ASX: CCL).

The other quote which guides the direction of my portfolio is closely related and comes from The Motley Fool co-founder David Gardner.

The quote came in response to a common investing conundrum. When faced with several great companies to invest in, how should we choose one? His suggestion:

"Make your portfolio reflect your best vision for our future"

Building a portfolio of companies should be a reflection of our personal views. We are far more likely to stick with a company when things get tough if they closely align with our beliefs about the future, our comfort with risk and our perception of value.

The quote doesn't mean you have to go out and buy a bunch of loss-making tech stocks or lithium miners. Well established companies like Telstra Corporation Ltd (ASX: TLS) or BHP Billiton Limited (ASX: BHP) might fit your view of the world better than a company like XERO FPO NZX (ASX: XRO), but that's the important thing about investing – it is so deeply personal.

Together I think these quotes pack a lot of punch and can be used to great effect when thinking about putting your money to work.

Motley Fool contributor Regan Pearson owns shares of Xero. You can follow him on Twitter @Regan_Invests. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Telstra Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Coca-Cola Amatil Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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