A lot of the things the industry puts out sets investors up to fail
8 months is the average holding period for investing in a company
Investors do not have na understanding of what they own and why they own it but also they don’t understand how decisions are made in their portfolio
Expecting the future to look like the past, and missing out on humility
One of the top things investors don’t understand
“Beating the stock market”
What stock market?
A market is somewhere you go to buy and sell goods and services
Stock market is where you go to buy and sell businesses
You should not have 100% of your money in the S&P 500
Therefore at no time should you compare your performance to the S&P
Should be asset allocated
Discipline in investing is PARAMOUNT
To your process
Buy and sell discipline
Beating a benchmark is a misleading statement
The only benchmark your portfolio should be up against is “am i getting closer to my goals”
Successful investing
Investing in great businesses over time
Don’t over diversify and allocate properly
Consider volatility your friend
Forget what happens over a short period of time
October 2, 2018