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Quiet Compounding
(All investors should study Morgan Housel’s Motley Fool article titled “The Agony of High Returns.”)
Gautam Baid • The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)
In investing, higher volatility usually equates to higher possible returns. In today’s world of online expression, we settle for lower expected value, market-level outcomes so as to not ruffle any feathers and not take any outsized risk. We’re basically hoping to allow people to know us enough so that they include us in their passive index of human... See more
Being Known is Being Loved
It is therefore incumbent upon the behavioral investor to create a system that allows him to get most of the grain while scrupulously avoiding beheading. Most of the time this means staying invested because what the market does most of the time is go up. Between 1872 and 2003, the S&P 500 was up 63% of years and down 37% of years. But research
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