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Here is the 5 most important investment lessons I have learned the hard way in the last 25 years.
I will answer all your questions in the comments and direct you to additional learning resources as requested.
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I will answer all your questions in the comments and direct you to additional learning resources as requested.
Thread
1)
Most people exaggerate their investment success and lie about their investment failures.
This distorts your reality and preys on your emotional weaknesses and biases.
Most people exaggerate their investment success and lie about their investment failures.
This distorts your reality and preys on your emotional weaknesses and biases.
2)
Most stocks are horrible investments
Only a very very small minority will produce returns substantially above market average.
Odds are 70% of the stocks you own right now will underperform the market over the next year and 20% will lose all your money in a next decade.
Most stocks are horrible investments
Only a very very small minority will produce returns substantially above market average.
Odds are 70% of the stocks you own right now will underperform the market over the next year and 20% will lose all your money in a next decade.
3)
The most successful investors I have ever seen have three key
skills
1. Optimism
2. Disciple
3. Patience
The most successful investors I have ever seen have three key
skills 1. Optimism
2. Disciple
3. Patience
4) Optimism
The best investors are like a great technology CEO
They have an optimistic temperament & they can see see where the world is going & position themselves for the next wave not the last wave
The best investors are like a great technology CEO
They have an optimistic temperament & they can see see where the world is going & position themselves for the next wave not the last wave
5)
Discipline
Only the paranoid survive
The best investors have a system for ruthlessly cut losing investments from a portfolio like cancer.
Capital preservation is a highly undervalued skill in a bull market, but is the only skill the matters when the tide goes out
Discipline
Only the paranoid survive
The best investors have a system for ruthlessly cut losing investments from a portfolio like cancer.
Capital preservation is a highly undervalued skill in a bull market, but is the only skill the matters when the tide goes out
6)
Patience
The patience to hold successful investments for the full cycle — 1,000% returns or more over a 5-10 year period
The real money is made sitting on your hands and it’s the hardest part
Patience
The patience to hold successful investments for the full cycle — 1,000% returns or more over a 5-10 year period
The real money is made sitting on your hands and it’s the hardest part
7)
It’s not the quantity of investment ideas you have that matters.
It’s the magnitude of success you have on your ideas.
It only takes a handful of great investment ideas over a lifetime to get rich.
It’s not the quantity of investment ideas you have that matters.
It’s the magnitude of success you have on your ideas.
It only takes a handful of great investment ideas over a lifetime to get rich.
8)
Time is required to let the magic of compounding work for you.
There are no short cuts.
The get rich quick casino will always seek to seduce you.
But like every casino the game is rigged to take your money and prevent your success
Time is required to let the magic of compounding work for you.
There are no short cuts.
The get rich quick casino will always seek to seduce you.
But like every casino the game is rigged to take your money and prevent your success
