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The emotions related to the market's ups and downs are short-lived.
Investment decisions driven by these emotions last.
And they can ruin an individual investor's entire life.
Double Fooled by Randomness du Jour.
1) Diversification is not aimed at raising returns but lowering variance ACROSS possible histories. What if MSFT went to 0?
2) Cherry Picking: Consider the 000s of entrepreneurs who DID NOT diversify. #Hindsight#Imbecile
Investing is one of the few disciplines where nothing happens and then everything happens, where long periods of boredom are followed by moments of pure fear and uncertainty.
When you engage in a business or any risky venture, treat negative outcomes as if they were likely, and positive ones as if they were a mere possiblity.
In one picture, two of the reasons why investors should invest for the long haul:
- inflation
- irreversible time.
Welcome back, Jack 🏀
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In un’immagine, due dei motivi per cui si dovrebbe investire per il lungo termine:
- inflazione,
- tempo irreversibile.
A massive 92 per cent of U.K. large-cap funds (and 97 per cent of mid-cap funds) underperformed their benchmarks in 2022. That’s the worst annual results on record. https://t.co/EzSD3eeUtM
BS Busting DuJour
We cannot scientifically measure happiness and make cross-cultural comparisons. But we can measure and compare the suicide rate, which happens to be high in these "happy" places.
Never trust claims by psychologists.