March 8, 2015

It is better to be informed on the world of investing rather than trying to be the smartest person in the room. Why? Example?

2 thoughts on “March 8, 2015”

  1. Garrett Haag says:

    You want to know as much as you can about investing, such as the risks and rewards of what your investing in. You want to be informed so you can make wise decisions. If you try to be the smartest person in the room you really dont stop to look at things. Your asuming that what your doing is correct and always correct. The smartest person in the room will likely try to pick individual stocks because “He knows best, or he just knows they are good” You want to play the odds and not try to beat the market but get the market. Index investing helps you get a nice steady return rather than a gamble that stock picking gives you.

  2. Mike Finley says:

    Well said, Garrett. Let’s recap.

    (1) To be informed is to understand how this game is played. This means picking up your education from the true experts like John Bogle, Burton, Malkiel and Charles Ellis to name just three AND disregarded the charlatans like Jim Cramer and others who spout off on television as they try to predict the future of markets.

    (2) To be “smart” when it comes to investing is to admit that you don’t know what direction any market is heading. That is why you own all markets at the lowest possible cost and ride out the storms while enjoying the good times when they come rolling along.

    (3) Start today by reading The Little Book of Common Sense Investing by John Bogle. Your life may never be the same!

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