Bob Farrell was a legendary stockbroker and market analyst known for his sharp insights on investing. His quotes are packed with wisdom, helping traders and investors avoid common mistakes. Whether you’re new to the market or a seasoned pro, Farrell’s advice is timeless.
Here are some of his best quotes, organized by key themes for easy reading.
Market Psychology & Investor Behavior
Bob Farrell understood how emotions drive markets. His quotes highlight the dangers of herd mentality and overconfidence.
🔹 “The public buys the most at the top and the least at the bottom.”
🔹 “When all the experts agree, something else is bound to happen.”
🔹 “Markets are strongest when they are broad and weakest when they narrow.”
🔹 “Fear and greed are stronger than long-term resolve.”
🔹 “Excesses in one direction lead to excesses in the opposite direction.”
Ever notice how people panic-sell in crashes and FOMO-buy in bubbles? That’s human nature.
Trends & Corrections
Farrell’s rules help spot market shifts before they happen.
🔹 “There are no new eras—excesses are never permanent.”
🔹 “The market is always making new highs or new lows—it rarely stands still.”
🔹 “When the market ignores bad news, it’s usually bullish. When it ignores good news, it’s bearish.”
🔹 “Markets return to the mean over time.”
🔹 “The market will do whatever it takes to prove the majority wrong.”
Markets don’t go up forever. Corrections are normal—don’t fight them.
Risk & Patience
Smart investing isn’t about quick wins. Farrell preached discipline.
🔹 “Investors tend to forget that markets are cyclical.”
🔹 “The crowd is right during trends but wrong at both ends.”
🔹 “Bear markets have three stages: sharp decline, reflexive rebound, then a long, drawn-out downtrend.”
🔹 “Don’t confuse brains with a bull market.”
🔹 “The four most dangerous words in investing: ‘This time it’s different.’”
Think you’ve found a “sure thing”? History says otherwise.
Timing & Strategy
Farrell’s rules help investors stay ahead—without trying to predict every move.
🔹 “Markets take the stairs up and the elevator down.”
🔹 “Price patterns repeat because human nature doesn’t change.”
🔹 “A market without corrections is unsustainable.”
🔹 “The market’s memory is short—lessons are quickly forgotten.”
🔹 “The best time to buy is when blood is in the streets.”
Trying to time the market perfectly? Good luck. Farrell favored patience over precision.
Final Thoughts
Bob Farrell’s quotes are a cheat sheet for smart investing. They remind us that markets move in cycles, emotions cloud judgment, and discipline wins long-term.
📌 Key Takeaways:
1️⃣ Markets overreact—don’t follow the crowd.
2️⃣ Corrections are normal; don’t panic.
3️⃣ Greed and fear drive prices more than logic.
Next time you’re tempted to chase a hot stock, ask yourself: What would Bob Farrell do? His wisdom could save you from costly mistakes.