I borrowed that title from the words of legendary investor Warren Buffet.
He’s talking about market timing.
Trying to get in just before prices start to rise.
And out again as they’re about to fall.
It’s exhausting thinking about it.
Worse still, it’s utterly pointless.
I’m an avid reader.
It’s about personal development.
Which is why I am learning everything I can about learning.
My first stop on that journey is the book Make It Stick, by Peter C. Brown, Henry L. Roediger, III, and Mark A. McDaniel.
A novelist and two cognitive scientists.
My key takeaway?
Elaborate on what you learn to help make it stick.
Increase your wealth, improve returns and cut costs.
Subscribe today and grow.
You’re probably not a good investor…
These aren’t my words.
They’re the statistical reality.
As described by Dan Solin, the New York Times bestselling author of ‘The Smartest’ series of investing books and The Smartest Sales Book You’ll Ever Read.
According to Dan, the “average investor” tends to panic when markets drop.
This causes them to miss out on the relatively few days when the market posts stellar returns.
Buying high and selling low.
Because of this, they enjoy annualised returns of just 2%.
Barely keeping up with inflation.
In the early 1950s, Nobel Prize-winning economist Harry Markowitz started writing about diversification.
He says it’s just as critical today.
So why do so many investors fail to take advantage of it?
I’m a huge fan of James Clear.
He’s an author focused on habits and decision making.
His ideas come from a wide range of disciplines, including biology, neuroscience, psychology, philosophy.
In other words, evidence.
At the core is a simple, but powerful question.
How can we live better?
Someone once said that failure is your greatest teacher.
However, it’s success stories that are used as blueprints for the way things should be done.
Failures become invisible.
Successes more visible.
Enter ‘survivorship bias’, explained in under 3 minutes with our latest video.
You could be forgiven for likening a financial adviser to a personal trainer.
Both improve your health (be it physically, or financially).
Both usually offer a free consultation and develop custom plans for specific needs.
Both aim to make you the best version of yourself.
Most importantly, they both require long-term commitment in order to see results.
Imagine this: You’ve just booked an airline ticket.
But then you see a cheaper flight online.
The second flight’s departure time is much more convenient – and you could change your ticket without paying an extra fee.
It makes sense to switch flights.
But plenty of people, including Danny Kahneman, might be too afraid to do it.