To invest wisely, you need to have some rules that help you stay focused. There will be many challenges and fake friends on the way.
It’s based on my life experiences, so it’s subjective and might not work for your situation. Of course, it isn’t investment advice. It’s a point of view which should be used as a kick starter to your research – see the first point.
- Trust in data; the broader dataset, the better. Don’t trust talking heads & celebrities.
- Trust in the diversification of your investment and savings. You don’t know the future.
- Don’t trust emerging markets. There are multiple political, sociological, and economic reasons, which don’t change overnight, why some markets are classified as developed.
- Timing is everything so, pay attention to what is happening in macro. Passive investing made sense back in the day, but we live in such a volatile environment that there might be lost decades ahead of us.