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