I will be greedy when others are fearful – Is that easy ?

In the financial market arena everyone is pundit and everyone has a say on one market or the other, sharing some blogof the unfortunate truths about investing some of them are from the past, and they stand true with the present scenario

  1. Saying “I’ll be greedy when others are fearful” is much easier than actually doing it.
  2. The gulf between a great company and a great investment can be extraordinary.
  3. Markets go through at least one big pull back every year, and one massive one every decade. Get used to it. It’s just what they do.
  4. There is virtually no accountability in the financial pundit arena. People who have been wrong about everything for years still draw crowds.
  5. There are tens of thousands of professional money managers. Statistically, a handful of them have been successful by pure chance. Which ones? I don’t know, but I bet a few are famous.
  6. On that note, some investors who we call “legendary” have barely, if at all, beaten an index fund over their careers.
  7. The more comfortable an investment feels, the more likely you are to be slaughtered.
  8. Not a single person in the world knows what the market will do in the short run. End of story.
  9. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.
  10. You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either.
  11. There will be seven to 10 recessions over the next 50 years. Don’t act surprised when they come.
  12. Thirty years ago, there was one hour of market TV per day. Today there’s upwards of 24 hours. What changed isn’t the volume of news, but the volume of drivel.
  13. Most of what is taught about investing in school is theoretical nonsense. There are very few rich professors.
  14. The more someone is on TV, the less likely his or her predictions are to come true.
  15. Related: Trust no one who is on CNBC more than twice a week.
  16. The market doesn’t care how much you paid for a stock. Or your house. Or what you think is a “fair” price.
  17. The majority of market news is not only useless, but also harmful to your financial health.
  18. Professional investors have better information and faster computers than you do. You will never beat them short-term trading. Don’t even try.
  19. How much experience a money manager has doesn’t tell you much. You can under-perform the market for an entire career. And many have.
  20. Most IPOs will burn you. People with more information than you have want to sell. Think about that.



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