-When they tell you to buy, chances are they want to unload desperately. And when they tell you to sell, they want to buy every single shares that you’ve got. So trust no one who screams buy or sell.
- The market doesn’t care how much you paid for a stock or what you think is a “fair” price. So, when stock brokers or investment banks publish analysis about “fair” price, you know what craps they are talking about. But that’s their job, so don’t blame them.
-The majority of market news is not only useless, but also harmful to your financial health. Despite the fact that you’ve access to information faster than it was 40 years ago.
-Professional investors have latest information and faster computers than you do. You will never beat them short-term trading. Don’t even try. And if you manage to, that’s pure luck and chances are you will not be able to do it again.
-How much experience a money manager or fund manager has doesn’t tell you much. They can underperform the market for an entire career. And many have, but they still keep their job, because their job was not to make money for other than you.
- Markets go through at least one big pull-back every year, and one massive one every decade. Get used to it. It’s just what they do in order to make money. And if you can’t stomach this, don’t lay a finger in the world of investing.
-Saying “I’ll be greedy when others are fearful” is much easier than actually doing it. The fact is when others are fearful, you’re doubly as fearful, and vice versa.
-There will be 7 to 10 recessions over the next 50 years. Now that we have told you this, don’t act surprised or dumb when they come. Being greedy when the market fall more than 50% is a wise move. This is the real buy n forget strategy.
-Don’t fall in love with companies you invest. Companies die and new ones emerge. Treat them as prostitute or gigolo whom you’re interested to get orgasm, nothing more than that.
- If you have credit card debt and are thinking about investing in anything, stop and think again. You will never beat 18% to 36% annual interest, some on daily or monthly compounding.
-However much money you think you’ll need for retirement, double it, or better still triple it.
Wealth means the number of days you can survive forward when you stop working right now - hmm, this is interesting!
How?
1. Pay yourself first
2. Don't buy an expensive car
3. Do compounding
