99% of investors do not beat the market.
They don't fail because they aren't intelligent enough.
They fail because they repeat simple mistakes over and over.
Lately, I've spent a lot of time studying standard stupidities.
Here are the most common ones 👇🏼
They don't fail because they aren't intelligent enough.
They fail because they repeat simple mistakes over and over.
Lately, I've spent a lot of time studying standard stupidities.
Here are the most common ones 👇🏼
1. Too Little Risk-Aversion
For a variety of reasons, investors decide they have to take more risks.
Whether it is by joining in on hyped stocks, crypto, or by leveraging their investments.
No one ever got broke by avoiding risk.
But many got rich by doing so.
For a variety of reasons, investors decide they have to take more risks.
Whether it is by joining in on hyped stocks, crypto, or by leveraging their investments.
No one ever got broke by avoiding risk.
But many got rich by doing so.
2. Lowering your Standards
As said above, investors often feel pressured to suddenly change their investing approach.
“The paradigm has changed”
Surprise: It has not!
Value Investing rules work; they do now and will continue to do so.
Stick with those timeless principles.
As said above, investors often feel pressured to suddenly change their investing approach.
“The paradigm has changed”
Surprise: It has not!
Value Investing rules work; they do now and will continue to do so.
Stick with those timeless principles.
3. Play Amateur Tennis
In amateur tennis, the player who makes the least mistakes wins.
It’s a “loser’s game.” Investing is too.
Don’t aim for the big successes.
Avoid catastrophes.
Then, the winners will come.
In amateur tennis, the player who makes the least mistakes wins.
It’s a “loser’s game.” Investing is too.
Don’t aim for the big successes.
Avoid catastrophes.
Then, the winners will come.
4. Do Not Compare Short-Term Results
Comparing short-term results is what causes envy.
And envy results in sudden changes to your investment philosophy. It is a call to action.
And often, a call to action is a call to failure in investing.
Comparing short-term results is what causes envy.
And envy results in sudden changes to your investment philosophy. It is a call to action.
And often, a call to action is a call to failure in investing.
5. Acting Prematurely
There is no time pressure in investing.
Do not invest without finishing your research.
When prices fall, we feel pressured to act before they rise again. Not smart. Take your time.
Acting prematurely is a safe way to make a mistake.
There is no time pressure in investing.
Do not invest without finishing your research.
When prices fall, we feel pressured to act before they rise again. Not smart. Take your time.
Acting prematurely is a safe way to make a mistake.
Summary of the 5 Standard Stupidities:
1. Too Little Risk-Aversion
2. Lowering your Standards
3. Avoid Mistakes > Outplay
4. Never Compare Short-Term Results
5. Acting Prematurely
1. Too Little Risk-Aversion
2. Lowering your Standards
3. Avoid Mistakes > Outplay
4. Never Compare Short-Term Results
5. Acting Prematurely
I hope you enjoyed this Thread.
If that’s the case, I would appreciate your support by
- Retweeting
- Liking
- Commenting
The first Tweet of this Thread.
If that’s the case, I would appreciate your support by
- Retweeting
- Liking
- Commenting
The first Tweet of this Thread.
What Standard Stupidity did you fall prey to before?
@dengusa
@Invesquotes
@JGreenwald86
@hkeskiva
@EugeneNg_VCap
@natstewart5
@IgnoreNarrative
@dengusa
@Invesquotes
@JGreenwald86
@hkeskiva
@EugeneNg_VCap
@natstewart5
@IgnoreNarrative
• • •
Missing some Tweet in this thread? You can try to
force a refresh
