Little white lies are told by humans all the time. Indeed, lying is often how we get through each day in a happy little bubble. We spend time and energy rationalizing our own behaviors, beliefs and decision-making processes.
It is in your DNA to love a good story. You know, neat tales with heroes and villains and conflicts to resolve. A good story pushes our buttons, is exciting and memorable.
Google's founders have had a good eye for imagining what technologies will be significant in the near future. No one asked Google to develop self-driving cars, but it helped them with street views for Google Maps.
Rather than engage in the sort of selective retention that so many investors tend to do and pretend mistakes never happened, I prefer to 'own' them. This allows me to learn from them and, with any luck, avoid making the same errors again.
The beauty of diversification is it's about as close as you can get to a free lunch in investing.
Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.
Any Wall Street advertising that does not go into the boring details of methodology is most likely to be pushing past performance.
The data strongly suggest that very good years in the U.S. stock market are followed by more good years.
Whenever you try to pick market tops and bottoms, you are making a prediction. Guessing what stock is going to outperform the market is forecasting, as is selling a stock for no apparent reason. Indeed, nearly all capital decisions made by most people are unconscious predictions.
When it comes to investing, there is no such thing as a one-size-fits-all portfolio.
History is replete with examples of tech firms that were marginalized by new companies and technologies.
Anyone can make an article longer; the skill is keeping it tight and lean.
If I am going to trash others for their dumb predictions, I must at least hold myself to the same sort of accountability.
If your investing approach requires that you become Nostradamus to succeed, then you are destined to fail.
Never forget this simple truism: Forecasting is marketing, plain and simple.
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