Investing facts and Behavioral Finance

I am personally inclined towards behavioral finance, as it has continuously challenged the conventional financialblog theory of rational wealth maximizers.

The irrational financial decisions, emotions and psychology have taken over the field of finance.

The very famous Aswath Damodaran says, the equity risk premium is the key to investing & valuation.

Ben Graham told once Mr. Market is there to serve you, not to guide you.

In the Taleb’s language you buy – sell or you make omelette out of it depends upon your luck, randomness, Probability, Belief, conjecture, Theory, Forecast and Anecdote.

The most crucial investing question that I have noticed is: Do you know your time frame?

To cut short I am sharing 9 facts on investing below:-

  1. Nine out of 10 people in finance don’t have your best interest at heart.
  2. Don’t try to predict the future.
  3. Saving can be more important than investing.
  4. Tune out the majority of news.
  5. Emotional intelligence is more important than classroom intelligence.
  6. Talk about your money.
  7. Most financial problems are caused by debt.
  8. Forget about past performance.
  9. The perfect investment doesn’t exist.

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