Huston55
Thinks s/he gets paid by the post
Here’s a link to and some of my favorite quotes from a fantastic article by Morgan Housel. (Thx to Mike Piper for the link in his weekly “Oblivious Investor” email.). It’s a bit long but, worth the read IMO.
ETA: My main take-away was that we should remain humble, have margin for error & play the long game.
https://www.collaborativefund.com/blog/the-psychology-of-money/
Quotes:
“...investing is not the study of finance. It’s the study of how people behave with money.”
“Good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that kill your confidence when they end. It’s about earning pretty good returns that you can stick with for a long period of time. That’s when compounding runs wild.”
“Real contrarianism is when your views are so uncomfortable and belittled that they cause you to second guess whether they’re right. Very few people can do that. But of course that’s the case. Most people can’t be contrarian, by definition. Embrace with both hands that, statistically, you are one of those people.”
“But room for error is underappreciated and misunderstood....Room for error lets you endure, and endurance lets you stick around long enough to let the odds of benefiting from a low-probability outcome fall in your favor.”
“A stable strategy designed to endure change is almost always superior to one that attempts to guard against whatever just happened happening again.”
ETA: My main take-away was that we should remain humble, have margin for error & play the long game.
https://www.collaborativefund.com/blog/the-psychology-of-money/
Quotes:
“...investing is not the study of finance. It’s the study of how people behave with money.”
“Good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that kill your confidence when they end. It’s about earning pretty good returns that you can stick with for a long period of time. That’s when compounding runs wild.”
“Real contrarianism is when your views are so uncomfortable and belittled that they cause you to second guess whether they’re right. Very few people can do that. But of course that’s the case. Most people can’t be contrarian, by definition. Embrace with both hands that, statistically, you are one of those people.”
“But room for error is underappreciated and misunderstood....Room for error lets you endure, and endurance lets you stick around long enough to let the odds of benefiting from a low-probability outcome fall in your favor.”
“A stable strategy designed to endure change is almost always superior to one that attempts to guard against whatever just happened happening again.”
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