Kindle Notes & Highlights
Smart investors, then, are those who strive to use the markets to their fullest advantage.
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Myth #1: A savvy investor should be able to beat the market.
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This tells us two things. First, chasing performance is a complete waste of time; if you succumb to this temptation you will very likely end up doing much
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Every time the fund sells a stock it pays a brokerage commission, and those commissions are considered to be operating
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Funds that keep expenses low and trading to a minimum will deliver a much higher after-tax return to their investors, thus starting them off well ahead of their
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select investment vehicles based on factors that you can control in the investment process: sales charges, expense ratios, and trading.
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The Psychology of Investing.
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Journalists, he said, are a mile wide and an inch deep.
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These are the twin forces of wealth destruction in America, Wall Street and the media, the former witting and the latter, for the most part, unwitting.
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that don’t have some obscure tech stock sitting on their balance sheet with a $90 cost basis and a 10-cent market value. The plain fact is that when markets get hot, investors get excited, and rash decisions follow. The “investing is exciting” mindset often leads to extreme amounts of volatility. And there is something very important
market risk is considered to be a form
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uncompensated
risk,
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Use index funds and broad-market
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If you’re going to be a successful investor, you’ve got to have some faith in your fellow man.
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When to get back
no matter how sensible they may seem in the heat of the moment.
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