I bought my first stock 21 years ago.
Here are 21 harsh investing truths I learned the hard way:
1: The worst mistake is to sell a mega-winner early
Here are 21 harsh investing truths I learned the hard way:
1: The worst mistake is to sell a mega-winner early
2: Humans are pre-programmed to be bad at investing.
3: Your personal finances are 10x more important than your investments.
4: Handle volatility is 100x easier in theory than in reality.
3: Your personal finances are 10x more important than your investments.
4: Handle volatility is 100x easier in theory than in reality.
5: Confidence in your strategy will rise and fall in lock-step with asset prices.
6: The best stocks put their owners through gut-wrenching volatility. The worst stocks do, too.
7: You're going to be wrong—a lot. Be humble.
6: The best stocks put their owners through gut-wrenching volatility. The worst stocks do, too.
7: You're going to be wrong—a lot. Be humble.
8: It's never as good as it seems or as bad as it seems.
9: Successful investing requires an uncomfortable mix of pessimism and optimism, which is damn hard for our brains to handle.
10: Graduate school taught me a lot of complex calculations that only work in theory.
9: Successful investing requires an uncomfortable mix of pessimism and optimism, which is damn hard for our brains to handle.
10: Graduate school taught me a lot of complex calculations that only work in theory.
11: History + psychology are the most important subjects for investors to study.
12: Consistently avoiding ruin is the most underrated financial skill.
13: Frauds, bad investments, good investments, and how to perfectly time the market are only obvious in hindsight.
12: Consistently avoiding ruin is the most underrated financial skill.
13: Frauds, bad investments, good investments, and how to perfectly time the market are only obvious in hindsight.
14: Interest rates matter. A lot.
15: The stock market will always attract people who are in a rush to build wealth and build wealth for people who are not in a rush.
16: No amount of words can explain what a 50% drop feels like.
15: The stock market will always attract people who are in a rush to build wealth and build wealth for people who are not in a rush.
16: No amount of words can explain what a 50% drop feels like.
17: "Make more, spend less, invest simply, and wait longer" is the best financial advice.
18: Consistently avoiding ruin is the most underrated financial skill.
19: Activity is not progress.
18: Consistently avoiding ruin is the most underrated financial skill.
19: Activity is not progress.
20: Ignore predictions. They are useless at best, dangerous at worst.
21: 99% of investors should dollar cost average into index funds and call it a day
21: 99% of investors should dollar cost average into index funds and call it a day
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