Happy Monday!
This week’s book is
It is a fantastic book full of practical advice on investing by one of the managers of Yale University’s endowment.
Estimated reading time: 1 minutes, 32 seconds.
Here’s my top 10 takeaways:
Perspective
The real purpose of saving is to empower you to keep your priorities, not to make you sacrifice.
2. Timing
The first fundamental rule for achieving financial security: it’s never too late to start.
3. Planning
If your plan is clear, it will be easier for you to stay on plan.
4. Crisis = Opportunity
The lower stock prices go, the better the bargains if you are truly a long-term investor.
Right now, there are a ton of discounted stocks on the market.
5. Risk Management
Avoiding troubles that come from incurring unnecessary risks is one of the great secrets to investment success.
6. The Key
As in so many human endeavors, the secrets to success are patience, persistence, and minimizing mistakes.
Avoiding stupidity goes a long way as well.
7. Time > Timing
Investors should avoid any urge to forecast the stock market.
Focus on time in the market rather than timing the market.
8. Golden Gooses
Any investment that has become a widespread topic of conversation among friends or has been hyped by the media is very likely to be unsuccessful.
You will probably be too late.
9. Winners
The long-term winners will be those who control the one thing they can control, their investment costs.
Have the fortitude to tolerate short-term volatility and stay the course in following a sensible long-run investment program.
10. Golden Rule
Do not invest anything you can not afford to lose.
“Stupidity well packaged can sound like wisdom.”
— Burton Malkiel
Until next week,
What did you think of today's email?
With your feedback, we can improve Bibliosophy. Click on a link to vote: