Are you still reading books on economic cycles, trading and hedging strategies to boost your financial literacy?
Is the most powerful and important investment book among them?
It is called โShut Up and Wait.โ*
It’s just one page with a long-term chart of economic growth.
Why?
The historical odds of making money in U.S. markets are 52/48 over one-day periods, 68% in one-year periods, 88% in 10-year periods & (so far) 100% in 20-year periods.
๐๐ป๐๐๐ต๐ถ๐ป๐ด ๐๐ต๐ฎ๐ ๐ธ๐ฒ๐ฒ๐ฝ๐ ๐๐ผ๐ ๐ถ๐ป ๐๐ต๐ฒ ๐ด๐ฎ๐บ๐ฒ ๐ต๐ฎ๐ ๐ฎ ๐พ๐๐ฎ๐ป๐๐ถ๐ณ๐ถ๐ฎ๐ฏ๐น๐ฒ ๐ฎ๐ฑ๐๐ฎ๐ป๐๐ฎ๐ด๐ฒ.
This means that there has never yet been a 20-year period where the stock market has lost money! (The Japanese Stock Market might be the one to really make this a rule … no rule without exception, right?)
If youโre invested primarily in index funds, which track the performance of the global market as a whole, youโre almost ๐ด๐๐ฎ๐ฟ๐ฎ๐ป๐๐ฒ๐ฒ๐ฑ ๐๐ผ ๐บ๐ฎ๐ธ๐ฒ ๐บ๐ผ๐ป๐ฒ๐ ๐ถ๐ณ ๐๐ผ๐ ๐ท๐๐๐ ๐๐ฎ๐ถ๐ ๐น๐ผ๐ป๐ด ๐ฒ๐ป๐ผ๐๐ด๐ต.
And if your time horizon is 10+ years, the daily market news is totally irrelevant to you. You are better off ignoring those.
Got 3 questions for you:
Might the most overlooked and underappreciated growth strategy right now be patience?
Could it be that patience is a virtue no one has time for anymore?
Might patience be that rare type of power YOU have total control over?
But โ สแดแด แดแด แดสสแดแดก ษชษด แด โแดแดษดแดสแดแด
ษชแดแดษชแดษด แดสแดสแดโ สแดสแด – history is NOT a map of the future!
๐๐๐๐ฃ๐๐จ ๐ฉ๐๐๐ฉ ๐๐๐ซ๐ ๐ฃ๐๐ซ๐๐ง ๐๐๐ฅ๐ฅ๐๐ฃ๐๐ ๐๐๐๐ค๐ง๐ ๐๐๐ฅ๐ฅ๐๐ฃ ๐๐ก๐ก ๐ฉ๐๐ ๐ฉ๐๐ข๐. ๐
Patience is not passive, on the contrary, it is concentrated strength.โ -Bruce Lee
*borrowed from Morgan Housel