“The investor’s chief problem - and even his worst enemy - is likely to be himself.”
“There seems to be some perverse human characteristic that likes to make easy things difficult. ”
“All of us would be better investors if we just made fewer decisions.
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If you don't believe in something, you'll fall for anything
1: The risk in the stock market is not being in it.
2: Money is future purchasing power and your biggest financial threat is inflation. The second biggest is outliving your money.
3: When you invest in the stock market (the great companies of the world) you're investing in real companies, who sell real things to real people.
4: Stock market volatility is always temporary, always expected and always feared by those who don’t understand it. When the markets are down we refer to this as 'the big sale'. The advance is permanent, the declines are temporary.
5: No one can time the markets, identify in advance a winning sector, winning fund manager or winning country. Therefore we will never try to do this or claim to know how to do it.
6: Lifetime investing success has very little to do with investment returns, but a lot to do with investor behaviour. Investing is more emotional than intellectual.
7: Successful investing is about 'time in' the markets and certainly not about 'timing' the markets.
8: Modern media moves from crisis to panic and back to crisis. We are never 'crisis-less'. Don't make investment decisions based on what you read or hear from a publication built for the sole purpose of grabbing your attention and selling advertising.
9: The pessimist is unlikely to be a successful investor; they will continually seek positive confirmation of their negative world views. Successful lifetime investors are optimists.
10: Every successful investor continuously works on their financial plan, every failed investor continuously reacts to the market and current events.
“The only thing new in the world is the history you do not know.”
What makes a successful lifetime investor (click the chart)
The Stock Market
Data taken from JP Morgan - Guide to the Markets - LINK HERE
“If past history was all that is needed to play the game of money, the richest people would be librarians.
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“Our favorite holding period is forever.
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“Someone’s sitting in the shade today because someone planted a tree a long time ago.
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