Priceless Investing Lecture
By Leo Gura - January 20, 2024
This is some of the best investment advice I’ve ever heard:
The key to being a good investor is to be a hawk on the fundamentals. Where everyone screws up is they get carried away with stories of riches, forget the fundamentals, and end up losing their pants. Investing tends to be a deeply counter-intuitive psychological game that you play with yourself — which of course means that most people will suck at it as they fall into self-deception.
I don’t claim to be a good investor, but I have a deep respect for how psychologically self-deceptive it is. So I tend to be very conservative. Investing is asymmetrical: it’s much easier to lose money than make money. It requires no skill or experience to start losing money and lots of skill and experience to retain your money long-term. That’s not a kind of game I like to play. But also, with high inflation these days, you gotta put your money somewhere. So you’re damned if you do and damned if you don’t.
My best advice on investing is this: watch out for the hype cycles. Don’t buy stuff when everyone is buzzing over it. The best time to buy stocks is when everyone is panicked and negative. It’s so counter-intuitive.
Please be careful and wise with your investments. Do not invest in flimsy, gimmicky things that promise you the sky. Or you will enter a world of pain.
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