"The Uncertainty Solution" is the best investing book I've read this year.
It's written by John Jennings (@bigdogtwo) who's the president of a $15 BILLION wealth management firm.
Here are 15 key lessons from the book:
It's written by John Jennings (@bigdogtwo) who's the president of a $15 BILLION wealth management firm.
Here are 15 key lessons from the book:
1/
The US stock market tends to go up about 2 out of every 3 years, no matter what has happened in the prior year:
The US stock market tends to go up about 2 out of every 3 years, no matter what has happened in the prior year:
2/
The stock market and the economy are related, but that doesn't mean they are correlated.
The stock market and the economy are related, but that doesn't mean they are correlated.
3/
The stock market rebound during the financial crisis & covid-19:
The stock market rebound during the financial crisis & covid-19:
4/
Surprises move markets, not expected news.
Do you know something the market doesn't?
Surprises move markets, not expected news.
Do you know something the market doesn't?
5/
The emotions of the market cycle:
The emotions of the market cycle:
6/
Embrace your ignorance and realize that neither you nor anyone else can predict the stock market.
Embrace your ignorance and realize that neither you nor anyone else can predict the stock market.
7/
Times of apparent stability are the riskiest; the best opportunities often occur when everyone else is going cuckoo.
Times of apparent stability are the riskiest; the best opportunities often occur when everyone else is going cuckoo.
8/
90% of actively managed US funds underperformed the market net of fees over the last 20 years.
90% of actively managed US funds underperformed the market net of fees over the last 20 years.
9/
Just 4% of all stocks accounted for all the wealth created by the stock market from 1926-2016.
Just 4% of all stocks accounted for all the wealth created by the stock market from 1926-2016.
10/
Focus on those things within your control:
Focus on those things within your control:
11/
Strategies for creating wealth:
-Concentrated
-Higher risk
-Active personal involvement
-Luck
Strategies for preserving wealth:
-Diversified
-Lower risk
-Passive involvement
-Process
Strategies for creating wealth:
-Concentrated
-Higher risk
-Active personal involvement
-Luck
Strategies for preserving wealth:
-Diversified
-Lower risk
-Passive involvement
-Process
12/
"Investing isn't about beating others at their game. It's about controlling yourself at your own game."
"Investing isn't about beating others at their game. It's about controlling yourself at your own game."
13/
How missing the 20 best and 20 worst days affects returns:
How missing the 20 best and 20 worst days affects returns:
14/
Investment behavior best practices:
-Choose inactivity over activity
-Prefer simplicity over complexity
-Create an investment statement
-Build a margin of safety into your portfolio
-Focus on the long term
Investment behavior best practices:
-Choose inactivity over activity
-Prefer simplicity over complexity
-Create an investment statement
-Build a margin of safety into your portfolio
-Focus on the long term
15/
Investment behavior best practices (part 2):
-Don't look at your portfolio
-Have a "play" account
-Find the right advisor
Investment behavior best practices (part 2):
-Don't look at your portfolio
-Have a "play" account
-Find the right advisor
If you enjoyed this thread and want to read the book, you can grab a copy here:
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