Many investors do not invest enough or fully, after taking profits too early and not being able to get back in and missing the boat
by Samuel Rhee
Some chase markets, others put more money to work at the top because of Fomo. Many do not invest enough or fully, after taking profits too early and not being able to get back in and missing the boat.
More than 90 per cent of the funds have underperformed the benchmark in the past 15 years,
Proven investment principles
Implement a rules-based process of investing, so you take the emotions out of the equation.
Start with a core allocation to equities and bonds; the longer you invest, returns will revert to the average.
Adopt the discipline of a regular savings plan to neutralise volatility and uneven returns.
Investing regularly means you get to invest at lower levels when markets are down. Even if you are in your 50s like me, you still have an investment horizon of 30 to 40 years.
Keep turnover low and costs as low as possible as they directly and negatively impact returns.
Keep it as simple as you can and keep it personal (crystallise the goals you are investing for).
Being honest with yourself is the most important trait to help you remove your personal biases and reduce the negative effects of being driven by your emotions.
Li Lu: “Chinese Warren Buffett”: “If investing is trying to predict the future and the future is inherently unpredictable, then the only way we can do better, is to assess all the facts and truly know what you know and know what you do not know. That’s your probability edge.”
Source: Business Times
https://www.businesstimes.com.sg/wealth ... issing-out
