Thursday, July 25, 2013

investing errors


1. Understand Your Own Cognitive Errors

 2. Avoid the Narrative (stick with data) 


3. Passive Investing avoids emotional decisions (Unlike Active)
4. High Fees Are a Huge Drag on Returns

5. Avoid Forecasts: The Future is Inherently Uncertain


6. Your Asset Allocation Decisions Matter More than Stock Picking

7. Be aware of Randomness
8. Never Confuse Past Performance with Future Returns

9. Allow Compounding to work for you


10. You Are Your Own Worst Enemy  

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