Morgan Housel of the Motley Fool has a list of 122 Things Everyone Should Know About Investing And The Economy. Many are variations on a theme but here are a few I liked:
- Investors want to believe in someone. Forecasters want to earn a living. One of those groups is going to be disappointed. I think you know which.
- There were 272 automobile companies in 1909. Through consolidation and failure, three emerged on top, two of which went bankrupt. Spotting a promising trend and a winning investment are two different things.
- I once asked Daniel Kahneman about a key to making better decisions. “You should talk to people who disagree with you and you should talk to people who are not in the same emotional situation you are,” he said. Try this before making your next investment decision.
- For many, a house is a large liability masquerading as a safe asset.
- “Success is a lousy teacher,” Bill Gates once said. “It seduces smart people into thinking they can’t lose.”