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Kindle Notes & Highlights
by
Andrew Craig
“It is not because things are difficult that we dare not venture. It is because we dare not venture that they are difficult.”
“Those who understand compound interest are destined to collect it. Those who don’t are doomed to pay it.“ – Tom and David Gardner, founders of The Motley Fool
You are much more likely to save a small amount of money right now than you are to save a large amount of money at some time in the future. I’m sure you are familiar with this psychology – it is also true of going to the gym, revising for exams, doing housework, and so on. As you are about to see, time is one of your biggest allies in becoming wealthy, so you must take action now or as soon as possible. Start small but start now. If you do start small, no matter how small, you will immediately enable yourself to benefit from the magic of compound interest.
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens … There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
As Henry Ford put it: “Thinking is the hardest work there is, which is the probable reason why so few engage in it.” Or, as Voltaire would have it: “Common sense is not so common.”
“If you would be wealthy, think of saving as well as getting.” – Benjamin Franklin
Live on less than you earn and invest the rest.
“The market can remain irrational longer than you can remain solvent.”
“The most powerful tool an investor has working for him or her is diversification. True diversification allows you to build portfolios with higher returns for the same risk. Most investors … are far less diversified than they should be. They’re way overcommitted to … stocks.” – Jack Meyer, Smart Money
