My 10-year old daughter recently asked me a question.
It caught me off guard.
“Dad, how much money is enough?”.
Recently I received a pearl of wisdom in my inbox.
It was from Dan Solin, author of the Smartest series of investing books.
It was an observation.
One which has major ramifications for investors.
Basketball coach John Wooden said “never mistake activity for achievement”.
They sound similar.
But they’re not the same.
This is a mistake that smart people make.
Investors in traditional index funds are buying the entire market.
Capturing its returns.
But data shows that investors who expose their portfolio to specific factors can (and do) beat the market over the long term.
Enter factor-based investing.
Indexing is the most thoroughly researched, best-supported method yet devised for ensuring good investing results over the long term.
I read a lot.
Investing and personal finance books feature heavily on my Kindle.
But I’m equally keen on books about learning, thinking, and decision making.
These books enable you to lead a better life.
My grandfather had a lot of money.
But he lost a lot within the stock market.
Growing up with this story – I always thought of investment as a gamble.
More like speculating than a sure thing.
That’s one reason I am so interested in sharing the secret of a much more successful experience…