Recently saw a list of 14 Things Every Wine Student Should Know. Decided to adapt it…
11 Things Every Investor Should Know
The answer to most questions you have starts with “it depends”.
There are no sure things.
Get comfortable with uncertainty.
Forget about what you “like”. It will not help you learn about or understand investing.
Upside/Downside capture, Alpha, Beta do not matter. Goals and time horizon do. This is one thing about investing I will say definitively.
Do not for a second believe that being talked down to by an “advisor” who you think knows a lot is appropriate or normal. The best people in any field do not do this.
Nothing can do more damage to your portfolio than fear and greed.
Don’t get carried away or too focused on the daily moves of the stock market. Sure, it’s hard not to look sometimes, but see #9.
Your goal should not exclusively be to outperform the market. Keep in mind, however, that many great investors are not just great stock pickers. There’s a lot more to investing success than just picking the right stock.
Always consider what the economic motives of the “advisor” might be.
Popular investment ideas are not always good investment ideas. This does not mean they are always bad either. Flies are attracted to honey, but they are also attracted to s**t.