No, I do dollar-cost averaging and make a trade only once a month on my salary day, regardless of the price of a share I keep buying. I do believe in the Fourth Law of Motion taught by Warren Buffett; For investors as a whole, returns decrease as motion increases.
It's 1931, and a boy and girl, both about seven years old, are playing on a swing set on N. 41st St. in Omaha. A stray dog appears and, without warning, charges. The children try to fight the dog off. Somehow, the boy is unscathed, but the dog bites the girl. She contracts rabies and, not long after, dies. The boy lives. His name? Charles Thomas Munger. Charlie Munger told me that story when I asked the vice chairman of Warren Buffett's Berkshire Hathaway, "what do you think of people who attribute their success solely to their own brilliance and hard work?" “I think that's nonsense,”Munger snapped, then told his story.“That damn dog wasn't 3 inches from me,”he said. “All my life I've wondered: Why did it bite her instead of me? It was sheer luck that I lived and she died.” He added:“The r
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I nonetheless insist that 99% of novice retail investors should invest in total market index by dollar-cost averaging. it is sometimes seen that the growth rates in certain illiquid asset classes excced that of the public stock market, but manager's skills hugely contribute to the higher return and you and I, who are neither very talented nor experienced, are likely to fall prey. If you are investing with serious money, just keep buying index fund and don't open your trading app frequently.
I start a day with reading 2 pages each of the two books full of real wisdom. 1. All I Want To Know Is Where I'm Going To Die So I'll Never Go There 2. How to Win Friends and Influence People
It doesn't matter at all how much my portfolio value fluctuated during a single quarter. What important is rather that I was fugal as always, I saved a significant portion of my income for investment and I managed to avoid worst mistakes. In short, I was on track to be wealthy enough after 30 to 40 years in the last quarter.
The only hobby requiring me to spend money is collecting businesses. I like buying great and lucrative businesses run by brilliant and honest management and available at good price.
Warren Buffett has made a quite clear guideline on this issue; If you know very very well about the business and predict its future with precision, you may put a significant portion of your wealth in an individual stock. Otherwise, you must diversify because "Diversification is protection against ignorance."
No, once you decide to believe in something unscientific and baseless like Feng Shui, you get a long list of superstitions to believe, astrology, necromancy, phrenology, to name a few.