'Experienced' investors, with ~20 years of experience (like yours truly), here are a few qualitative things you may want to know before you continue investing your money in stocks.
Grab some green tea. π΅
Grab some green tea. π΅
Just being in the markets for 15-20 years does not mean you've known and seen everything that is there to see in investing. Markets will continue to prepare some really tough question papers for you. Don't get caught napping.
You may have gotten one prediction right in the last 20 years. This does not make you an expert in predicting, especially the future.
So, stop predicting and seeking predictions. Just keep preparing for the rough times coming your way (and they will).
So, stop predicting and seeking predictions. Just keep preparing for the rough times coming your way (and they will).
The best of investors have not been able to master their emotions. So, if you think you have hope, think again.
We are not rational beings, even if economics text books assume we are. And so, the best hope you have is to minimize mistakes of emotions, not eliminate them.
We are not rational beings, even if economics text books assume we are. And so, the best hope you have is to minimize mistakes of emotions, not eliminate them.
One safe way to avoid becoming an emotional fool from time to time is to have a 'process' that suits you, and a sound checklist that takes away some weight from your mind and helps automate a large part of your decision making.
So, have a process. Then, have faith in it.
So, have a process. Then, have faith in it.
Experience does not guarantee that you understand the complexity of the markets and its participants. A powerful antidote against the complexity of markets is the simplicity with which you should invest.
"Keep it simple" is good advice for kids, and for grown up kids too.
"Keep it simple" is good advice for kids, and for grown up kids too.
Stop consuming media, even if the anchor looks handsome or beautiful, or sounds smart. Most of it is noise. Since you often do not know what isn't, you are better off completely avoiding it.
Believe me, life is happier avoiding media, and investment decisions saner.
Believe me, life is happier avoiding media, and investment decisions saner.
With ~20 years in the market, you must be in your 40s or 50s. Your body is not fit enough to handle much stress. So, please do not stress out watching the stock ticker minute by minute, and causing your heart to miss beats.
You anyways don't control the ticker. Accept this.
You anyways don't control the ticker. Accept this.
You may have accumulated enough in the first 40 years of your life. Now is the time to subtract.
Subtract negative people, a lot of useless stuff, useless stocks, useless advice, and useless practices from your life.
Focus on what's enduring. Leave the ephemeral out.
Subtract negative people, a lot of useless stuff, useless stocks, useless advice, and useless practices from your life.
Focus on what's enduring. Leave the ephemeral out.
Legendary investor Howard Marks says, βThere are old investors, and there are bold investors, but there are no old bold investors.β
Remember this. In great likelihood, if you keep acting bold, you may never reach your old. The mind and body have their limits. Know that.
Remember this. In great likelihood, if you keep acting bold, you may never reach your old. The mind and body have their limits. Know that.
Spend less and less time in the stock market, and more time outside of it. Maybe, add philosophy and spirituality to your life. Learn an art. Read old books. learn to write. Start a diary.
Do anything instead of keeping a constant focus on your portfolio and net worth.
Do anything instead of keeping a constant focus on your portfolio and net worth.
Do what Kurt Vonnegut said "makes your soul grow."
Invest well just to reach that stage of life, if you are still not there.
Believe me, it's a beautiful feeling when you are there.
Invest well just to reach that stage of life, if you are still not there.
Believe me, it's a beautiful feeling when you are there.
If you are still reading, thank you for your time.
And congratulations! You have an attention span much longer than an average human living today.
Well done!
:-)
And congratulations! You have an attention span much longer than an average human living today.
Well done!
:-)
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