10 Things I Believe About Investing

1. I believe simple beats complex, but simple is much harder to implement because complex will always sound more intelligent and feel more comfortable to buy into.

2. I believe investors spend far too much time worrying about their buy or sell decisions when patiently holding onto an investment is probably the most important aspect of investing.

3. I believe it’s not your job to figure out whether legendary investors are right or wrong about the markets, but whether their advice or predictions are relevant for your particular situation or not.

4. I believe self control can make you far more money than just about any other trait as an investor.

5. I believe any successful risk management system has to be rules-based or it won’t work in practice because trading on gut instincts is an impossible strategy that very few people can pull off consistently.

6. I believe investing should be focused less on being bullish or bearish and more on progress towards your goals.

7. I believe that individuals spend far too much time studying billionaire fund managers and not enough time studying normal people who have successfully retired.

8. I believe that creating a long-term investment plan about an uncertain future is never going to be perfect, but it’s still one of the most important things an investor can do.

9. I believe that paying attention to your spending and saving habits is far more important than paying attention to the daily changes in the markets.

10. I believe that nothing about investing is ever easy, but we still make it harder than it has to be.


Further Reading:
Financial Matters