How much I want to read more: 3/10
[quote, Dr. Bob Froehlich]
This is a must-read for both individual investors as well as financial advisors. It will forever change the way you think about developing investment and asset allocation strategies.
despite momentum being pervasive, it remains largely, and perhaps curiously, misunderstood by investors.
“Rising prices attract buyers; falling prices attract sellers.” It is the momentum effect.
[quote, Isaac Newton]
If I have seen further, it is by standing on the shoulders of giants.
[quote, José de la Vega]
Profit in the share market is goblin treasure; at one moment, it is carbuncles, the next it is coal; one moment diamonds, and the next pebbles. Sometimes they are the tears that Aurora leaves on the sweet morning’s grass; at other times, they are just tears.
“Buy and hold doesn’t work anymore. The volatility is too significant. Almost any asset can suddenly become much more risky.”
“Diversification alone is no longer sufficient to temper risk. You need something more to manage risk well.”
We need a way to earn long-term above-market returns while limiting our downside exposure.
I am always amazed when I think of how much time and effort most people put into accumulating wealth and how little study and effort they put into finding the best ways of preserving and growing that wealth.
Warren Buffett says that risk comes from not knowing what you are doing.
CHAPTER 1 - WORLD’S FIRST INDEX FUND
[quote, John F. Kennedy]
Never trust the experts