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How To Win At Investing
Wealth inspiration part 29.
Wisdom can often come in small packages, and wisdom about building wealth is no different.
Today’s quote is from Warren Buffet, the world’s most famous investor:
“The stock market is designed to transfer money from the active to the patient.”
If you know anything about Buffett, you know that he strongly advocates “buy and hold” as the best way to invest.
I believe that it is the ONLY way to invest.
Buying something and hoping for a quick buck is not investing, it is speculation, similar to gambling.
Too many people gamble with their money because either they don’t know what they are doing, or because they can’t control themselves.
As per this article from the balance, here are the most common investing mistakes that contribute to them lagging the market by +/- 30% in 2019:
- Buying high — investors put money into the market when it is going up, ensuring they pay dearly for what is popular
- Selling low — likewise, investors overreact and pull money out of the market when it drops, ensuring they sell cheap what is not popular anymore
- Overconfidence — investors believe they…
