Understand your own time horizon in investing
Not good for those who strongly believe in hardcore analysis as investors to be world class investors.
Skip this chapter!
Less analyzing. More investing - CW8888
It is fine for Uncle8888!
Uncle8888 is with this camp. Earn more and save more.
In long term investing, you account size really matters - CW8888
In nearly every case, it is more realistic scenario to spend zero hours on investing, and simply works a few more hours and achieve a much higher yield on your entire portfolio.
Only once you achieve family office levels of wealth does it make sense to be spending ANY time on your portfolio.
CW: Anyway most retail investors will disagree. LOL!
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Investing is a Game of Money. More money. More chances. More chances. Higher rate of success of winning more than losing. Every chance; you will learn something for the next chance. More chances. More learning.
ReplyDeleteTime horizon -- part of the "ability" aspect of taking risk / investing.
ReplyDelete"Master of none" investing -- Buffett also agrees with this for majority, not just retail, but also pension funds, university endowments & sovereign wealth funds. No need to pay $10s of millions per year to so-called skillful portfolio managers! :)
Hence the saying of some to keep 90% of your long term investments boring, and use 10% for exciting trading or "investment strategies" -- to cure the itchy fingers.
Earn more & save more -- Meb Faber is an advocate for the Personal Finance Pyramid, where investing actually only forms a small top layer. The bottom 3-4 layers are more important fundamental aspects that determines more for a person's financial wellbeing e.g. type of study, earning & job aspects, skillsets, thriftiness, emergency funds, term insurance, medical insurance, cost of housing etc.
Many bloggers have also written from personal experience, as well as analysis, that the 1st 10-15 years of active income & savings are much more important to long term wealth than trying to "master" investment performance.
Personal finance pyramid
Thumb up to your add on. Scaling up our personal finance pyramid is good way to go about.
ReplyDeleteYa. Can
ReplyDeleteThis is so true. Spend more time earning active income for investing. Most bloggers here boast their portfolio but actually they did not tell where in their first place their money comes from.
ReplyDeleteDabbling with the stocks does not help. It's more discipline of the mind.
And discipline of the mind comes from experiences (personal, or others by reading) and cultivating over times which eventually lead to wisdom.
Wisdom of investing. This wisdom will help us to avoid future large losses
DeleteLow return on war chest is not negative return on losing position holding. Not same
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