Did you catch yesterday's blog with 13 amazing money lessons from Morgan Housel author of the Psychology of Money and whose blogs regularly appear on the Collaborative Fund.
If not, please read it here.
And today I hope you enjoy a further 13 lessons from this inspirational author, who I believe in time will be even more quoted in the famous Warren Buffett.
1. Investors were probably better informed 20 years ago when there was 90% less financial news.
2. Change your mind as often as the facts change.
3. Don't attempt to keep up with the Joneses without realizing the Joneses aren't any happier than you are.
4. Every five to seven years, people forget that recessions occur every five to seven years.
5. Be careful when reading about how stupid investors can be and not realize you're reading about yourself.
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6. Predictions, opinions, and forecasts should be discounted by the number of times the person making them is on TV each week.
7. Napoleon’s definition of a military genius was “The man who can do the average thing when everyone else around him is losing his mind.” It’s the same in business and investing.
8. Good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that can’t be repeated. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time. That’s when compounding runs wild.
9. The trick when dealing with failure is arranging your financial life in a way that a bad investment here and a missed financial goal there won’t wipe you out so you can keep playing until the odds fall in your favour.
10. Read last year's market predictions and you'll never again take this year's predictions seriously.
11. Read more books and fewer articles.
12. There are many things never worth risking, no matter the potential gain.
13. Read more history and fewer forecasts.