I have been a stock market investor for the past nine years now, and have seen a respectable performance overall.
Why respectable? Because my investments have helped me at several key phases of my life, most important being the purchase of a house property and then repayment of the entire loan on the same within 5 years (though with some support from the family).
Then, apart from a solid support from my wife, I must thank my investments to have given me the necessary “guts” to quit my job and begin on this journey of independence, where all I work for is my passion – to help individual investors like you become independent and sensible in managing your own money.
So even after doing a respectable job as an investor, what could be the things that I still rue I’d learned before starting out nine years back?
Well, a man’s (or a woman’s) heart always aspires for more…and in hindsight, always thinks that life could have been even better if he or she knew certain more things.
Even I believe my investing life would’ve have been even better (not that I have any complaints) had I known certain things that could’ve made me a better investor, especially during times of crisis and uncertainty.
So I’m jealous of you if you are just starting out as an investor, because here in front of you lie the lessons that, if you know and appreciate and then inculcate into your investing habits, can take you much farther than you now expect to go.
Even if you have been an investor for long, these lessons might serve as a reminder of the investing wisdom that you must never forget.
Here’s the wisdom of a few great investors, condensed into eight life-long investing lessons:
- Avoid self-destructive investor behavior
- Understand that crises are inevitable
- Historically, periods of low returns were followed by periods of higher returns
- Don’t attempt to time the market
- Don’t let emotions guide your investment decisions
- Recognize that short-term underperformance is inevitable
- Disregard short-term forecasts and predictions
- Don’t make decisions based on variables that are impossible to predict or control over the short term
Click on the image below to access these lessons in greater detail. If you can’t see the image below, click here.
Source of Document: Davis Advisors
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