As markets fall and fear rises, it’s only human to lose the ability to distinguish between a temporary decline and a permanent loss. “This time is different.” These four words capture what one of the great investors and philanthropists once Read More …
Month: August 2024
Emotional risk #2 (cont.)
Instead of calling ourselves investors in stock, we could call ourselves owners of the companies. Stocks ❌ Companies ✅ Investors ❌ Owners ✅ Investors in the stock❌ Owners of companies✅ Q. What are stocks ? Seasoned successful companies Q. what Read More …
Emotional Risk #2
In most areas of life, lower prices are seen as a good thing, but in investing, they’re often viewed as bad. This is a natural reaction, but acting on it can lead to long-term regret. We tend to feel good Read More …
Emotional Risk #1
Emotional Risks in Long-Term Equity Investing In equity investing, your emotional response can be more critical than the market’s actual movements. #1 Emotional Risk Market losses are felt much more deeply than gains. For example, a 30% gain might seem Read More …
Market Timing and Selection
Market Timing and Selection To generate real-life returns, one must focus on: 1.Process and Planning 2.Asset Allocation 3.Diversification 4.Selection 5.Managing Your Behavior The portfolio composition can control only 10% of long-term real-life returns. 90% includes: 1.Your personal value-based plan 2.Percentage Read More …