Today, we are going to talk about the most important piece of investing. If you get this part wrong then not much else matters.
2 ways we run aground as investors:
Ways to counter ego:
- Always be learning
- Actively seek out information that seems to contradict your opinions and analyze it carefully
- Beware of beginnings – little knowledge is dangerous because it’s enough to hurt you
- Say – “I don’t know”
Ways to counter conservatism
- Remind yourself that anything worth doing takes risk, uncertainty and hard work
- Educate yourself on diversification, proper asset allocation, and the long-term benefits of holding risky assets within a portfolio.
- The Behavioral Investor – Daniel Crosby
- The Intelligent Investor – Benjamin Graham
- Your Money and Your Brain – Jason Zweig
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