15 images every investor needs to memorize:
1: This chart by Jeremy Siegel
2: You make more money by holding in bull markets that you lose by holding through bear markets
3: Investors can be their own worst enemy
Why do they underperform? Their behavior.
Why do they underperform? Their behavior.
4: The market cycle wreaks havoc on investors' emotions
It's completely counter-intuitive that bull markets die from euphoria and are born during despondency, but that's how it works!
It's completely counter-intuitive that bull markets die from euphoria and are born during despondency, but that's how it works!
5: New technologies put investors through an even more extreme emotional cycle
The hype cycle is real. Study it!
The hype cycle is real. Study it!
6: The cost of earning superior long-term returns is dealing with large drawdowns.
They are normal. Expect them.
They are normal. Expect them.
7. The intra-year drawdowns can by just as crazy, even during up years
EXPECT VOLATILITY
h/t @michaelbatnick
EXPECT VOLATILITY
h/t @michaelbatnick
8: There will always be a smart-sounding reason to sell
9: Politics and investing don't mix
10: Ignore forecasts
Professionals can't even predict the DIRECTION of interest rates, let alone the magnitude
h/t Apollo
Professionals can't even predict the DIRECTION of interest rates, let alone the magnitude
h/t Apollo
11: In the short-term, changes in valuation drive returns
In the long-term, changes in sales & profits drive returns
In the long-term, changes in sales & profits drive returns
12: The easiest way to increase your odds of success is to increase your holding period
h/t @morganhousel
h/t @morganhousel
13: Stocks occasionally give you nothing
Plan accordingly
h/t @morganhousel
Plan accordingly
h/t @morganhousel
14: We are living through the most disruptive period in human history
15: Start!
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