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March 5 - March 11, 2018
Greenspan paused for a while. Finally, he leaned forward and said: “Resign!”
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Buffett says he’s left instructions that, after his death, the money he leaves in trust for his wife should be invested in low-cost index funds.
Warren Buffett jokes that you never want to ask a barber whether you need a haircut.
the best investors are obsessed with avoiding losses.
design an asset allocation that ensures we’ll “still be okay,” even when we’re wrong.
simply means that we should invest in ways that help to protect us from nasty surprises.
risking one dollar in the expectation that I’ll make five,”
Yet all three share the same obsession: how to reduce risks while maximizing returns.
As you’ll learn in the next chapter, corrections and bear markets can be among the greatest financial gifts of your life.
Diversify Across Different Asset Classes.
Diversify Within Asset Classes.
everything is cyclical.
90% of surviving a bear market comes down to preparation.
The moral: never bet your future on one country or one asset class.
For investors, confirmation bias is a dangerous predisposition.
The Solution: Don’t Sell Out. Rebalance.
