1. A great Company may not give great returns. The gulf between a great company and a great investment can be extraordinary.
2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do.
3. There are tens of thousands of professional money managers. Statistically, a handful of them has been successful by pure chance.
4. During Recessions, Elections, and Reserve bank Policy Meetings, people become unshakably certain about things they know nothing about.
5. The more comfortable an investment feels, the more likely you are to be slaughtered.
6. Not a single person in the world knows what the market will do in the short run. End of the story.
7. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — he is much bigger.
8. There will be 7 to 10 recessions over the next 50 years. Don’t act surprised when they come.
9. Warren Buffett’s best returns were achieved when markets were much less competitive. It’s doubtful anyone will ever match his 50-year record.
10. Most of what is taught about investing in university is theoretical nonsense. There are very few rich professors.
11. The majority of market news is not only useless but also harmful to your financial health.
12. Professional investors have better information and faster computers than you do. You will never beat them in short-term trading. Don’t even try.
13. The decline of trading costs is one of the worst things to happen to investors, as it made frequent trading possible. High transaction costs used to cause people to think hard before they acted.
14. The phrase “double-dip recession” was mentioned 10.8 million times in 2010 and 2011, according to Google. It never came. There were virtually no mentions of “financial collapse” in 2006 and 2007. It did come.
15. The best investors in the world have more of an edge in psychology than in finance.
16. What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.
17. If you have credit card debt and are thinking about investing in anything, stop. You will never beat 30% annual interest. Do not trade borrowing money on Credit cards. 18. The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst. Visit our website for more information-http://sharemarketclasses.in
