Focus on the factors you can control in your investments from "summary" of Random Walk Guide To Investing by Burton G Malkiel
One of the key principles in successful investing is to concentrate on the elements that are within your control. There are so many variables that can impact the performance of your investments, from market conditions to geopolitical events, that focusing on what you can control can provide a sense of empowerment and direction in an otherwise unpredictable landscape. One factor that investors have control over is how much they pay in fees and expenses. High fees can eat away at your returns over time, so it's important to choose low-cost investment options whenever possible. By minimizing fees, you can increase your chances of achieving better long-term results. Another controllable factor is the level of risk you are comfortable with in your investment portfolio. While you can't predict the future performance of the market, you can determine the level of risk that aligns with yo...Similar Posts
Lower expense ratios boost returns
The concept of lower expense ratios boosting returns is a fundamental principle that all investors should pay attention to. Exp...
Consider the company's track record of innovation and adaptability
When evaluating a company for investment, it is crucial to examine its history of innovation and adaptability. A company that h...
Exit loads and taxation
Exit loads and taxation are two important aspects to consider when investing in mutual funds. Exit loads are fees charged by th...
Investors often exhibit a status quo bias
Investors often exhibit a status quo bias, which refers to their tendency to stick with their current investments rather than m...
Forecasting the market is unreliable
The idea that one can predict the future course of the stock market is a seductive one. If we could only figure out where the m...
Active trading rarely beats the market
The idea that active trading rarely beats the market is a crucial concept for investors to understand. It challenges the common...
Learning to analyze financial statements effectively
Analyzing financial statements effectively is a crucial skill for any investor. It is the key to understanding the financial he...
Stay disciplined when investing
Investing requires a disciplined approach, where one must resist the urge to follow the crowd or make impulsive decisions based...
Focus on longterm investing, not market timing
The intelligent investor knows that attempting to time the market is a fool's errand. Market timing relies on the ability to pr...
Loss aversion causes investors to avoid taking necessary risks
Loss aversion, a key concept in behavioral finance, refers to the tendency for individuals to experience a stronger negative em...