You should practice a sort of financial mindfulness, disciplining yourself to make logical investment decisions now despite the knowledge that they might not always work out.
Risk-as-feeling generates poorer choices.
Pessimism is often taken more seriously than optimism.
Self-discovery takes longer than we would like.
Bubble and crash both does the damage.
One of the most basic human desires: to be part of the group even if the group is wrong.
It is ironic that overconfidence tends to be strongest when investing in something that is difficult to understand.
In the moment, as it’s all going on, it’s impossible to know what is going to happen next.
The stock market is not the economy.
It is impossible for a homeowner to know the precise value of their home.
The job of the average investor is not to guess what the stock market is going to do next month. Why not? Because it’s impossible to know.
You are the key, not the stocks you pick.
Investors are great at paying attention to what’s going on when markets are good and horrible when markets are bad.
Investors’ attention is a finite resource.
An investor who overreacts and sells at the bottom experiences a real cost, the opportunity cost of not being invested when the market inevitably rallies.
It’s impossible to know the “correct” future value for a stock.
Investors tend to focus on the most salient bit of information, even if it’s merely anecdotal, and overreact to it.
Time is clearly one key to successful investing and not even higher returns will always make up for missed time.
It’s impossible to know what the stock market is going to do other than fluctuate in the short-term and appreciate in the long-term.
Diversification is like insurance: You have to get it before you need it.
Your job as an investor is to remember that the normal is more important to success than the dramatic.
Los aversion is the very human tendency to dislike losses to a greater degree than we like gains.
The losses hurt about twice as intensely as gains feel good.
Stock market is a mechanism to transfer wealth from impatient to patient.
Overreaction: It is always feel like the right reaction at the time, yet rarely is.
We are not all in the market together.
Social interactions in the investing realm are rarely truly productive.
Mood impacts how we invest.
The stock market does not know what investment you own, nor does it care.
Feelings becomes a more important element in decision-making as complexity and uncertainty increase.
It is the rare individual who prefers ambiguity and complexity. It is the rare market that doesn’t offer ambiguity and complexity in enormous servings.
We would like to think that investors buy the best stocks. The truth is that they buy the stocks that grab their attention.
Be logical beforehand, stalwart during, and you will be successful afterward.