Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Truths of Investing?
Old 08-01-2014, 10:20 AM   #1
Recycles dryer sheets
Join Date: Aug 2013
Posts: 349
Truths of Investing?

I thought this was one of the better articles to appear on Yahoo Finance.

Investors learn important truths, but we sometimes choose to suspend this knowledge when it feels better not to be encumbered by it. As an investment advisor, I come into contact with this phenomenon on a daily basis. No one is immune to it, myself included.

Below are seven essential truths of investing that we are all aware of, but cannot accept at all times, no matter how much evidence we’ve seen.

It's worth reading if you have a chance, and as always, the discussion this forum is far superior to the comments on the articles themselves.

From the article without the author's commentary, the list of truths:

1. Anyone can outperform at any time, no one can outperform all the time.

2. Persistence of performance is nearly non-existent.

3. Taxes and commissions matter.

4. Smart doesn’t equal good.

5. Incentives matter.

6. The crowd is always at its most wrong at the worst possible time.

7. Fear is significantly more powerful than greed.

7 (a). There is no pleasure without the potential for pain.

How about you? Do you buy these truths?
aim-high is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-01-2014, 10:41 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,203
Sure, I believe those truths.

Charles Schwab wants you to think your active trading is going to help you, Vanguard wants you to think you should never place a trade so long as you live.
LOL! is offline   Reply With Quote
Old 08-01-2014, 11:17 AM   #3
gone traveling
Join Date: Sep 2013
Posts: 1,248
Past Performance is No Guarantee of Future Results

In real life past performance matters. We promote somebody who did a good job.

But in investing opposite seems to be truth...... It is hard for us to accept.
eta2020 is offline   Reply With Quote
Old 08-01-2014, 11:33 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 10,203
Speaking of past performance. How about this study of penalty kicks in soccer:
Why footballers should always take a penalty to the same corner - Telegraph
LOL! is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
5 hard truths for a tough market REWahoo FIRE and Money 18 10-08-2011 09:29 AM
Income investing and total return investing. clifp FIRE and Money 18 09-03-2011 09:17 AM
Your Favorite Investing and Finance Books bongo2 Other topics 16 11-15-2003 11:58 AM
Investing Seeker FIRE and Money 10 09-26-2003 04:13 PM
International Exposure in Investing arrete FIRE and Money 21 04-03-2003 10:54 AM

» Quick Links

All times are GMT -6. The time now is 04:10 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.