Thanks for your comment Richard. I completely agree a big problem is about people not saving despite being able to do so. And how can they invest if they don't save first? A sad story, indeed.
This is a question that could be answered in a very long way, but my simplified view is that yes, it can be beaten but with a caveat. In the short term it is easier to do so. Over long periods of time, we have the issue that Mike Zaccardi brought up in a comment below: when you have millions of individuals trying to beat the market, you'd expect some to do. Which brings us to the point of luck vs. skill: were they successful because they're good or because fortune favored them? It's a tricky question. I believe the market can be beaten over the long haul, but it's no easy task. Even though I believe some people can do it due to superior ability, my guess is that it's something only available to a minority of investors who try.
I like this one by Warren Buffett because it touches on an important topic in a funny way: “Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.”
I completely agree. Hands down to the best book. It covers 99% of what one needs to know about finance, is practical, based on factual research and written clearly in just ~150 pages. It's the book I find myself recommending the most to those asking me about money and investing.
The first TV my partner and I bought was the most basic we could get. We had just moved in and already had many expenses. We didn't even watch that much TV at the time, so we thought it wouldn't make much difference. We ended up getting a TV that was too small and low quality. Because of that, we almost never used it, and didn't watch many shows or films (which we actually like doing). We sold it some years later and bought a bigger, higher-quality TV that was three times more expensive, but much more worthwhile.
I hate tracking my expenses but have been doing it weekly nonetheless since 2015. It's annoying and time-consuming, but it helps me see if I'm on track to reach my saving goals, why I might be falling short, understand where I'm spending most, etc.
Comments
Thank you.
Post: Stock Answer
Link to comment from April 22, 2021
Thanks for your comment Richard. I completely agree a big problem is about people not saving despite being able to do so. And how can they invest if they don't save first? A sad story, indeed.
Post: Stock Answer
Link to comment from April 21, 2021
This is a question that could be answered in a very long way, but my simplified view is that yes, it can be beaten but with a caveat. In the short term it is easier to do so. Over long periods of time, we have the issue that Mike Zaccardi brought up in a comment below: when you have millions of individuals trying to beat the market, you'd expect some to do. Which brings us to the point of luck vs. skill: were they successful because they're good or because fortune favored them? It's a tricky question. I believe the market can be beaten over the long haul, but it's no easy task. Even though I believe some people can do it due to superior ability, my guess is that it's something only available to a minority of investors who try.
Post: Can the market be beaten?
Link to comment from April 20, 2021
I like this one by Warren Buffett because it touches on an important topic in a funny way: “Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.”
Post: What’s your favorite financial quote?
Link to comment from April 20, 2021
Interesting, I wasn't aware. Thank you for sharing.
Post: What should investors do about the possibility of higher interest rates?
Link to comment from April 12, 2021
I completely agree. Hands down to the best book. It covers 99% of what one needs to know about finance, is practical, based on factual research and written clearly in just ~150 pages. It's the book I find myself recommending the most to those asking me about money and investing.
Post: What’s the best financial book you’ve ever read?
Link to comment from April 9, 2021
Books. For $10 or $20 you're getting hours of entertainment or education. A good book can be way more valuable than the dollars it costs!
Post: What everyday purchase do you consider a bargain?
Link to comment from April 9, 2021
The first TV my partner and I bought was the most basic we could get. We had just moved in and already had many expenses. We didn't even watch that much TV at the time, so we thought it wouldn't make much difference. We ended up getting a TV that was too small and low quality. Because of that, we almost never used it, and didn't watch many shows or films (which we actually like doing). We sold it some years later and bought a bigger, higher-quality TV that was three times more expensive, but much more worthwhile.
Post: When have you insisted on paying the lowest cost possible—and regretted it?
Link to comment from April 8, 2021
I hate tracking my expenses but have been doing it weekly nonetheless since 2015. It's annoying and time-consuming, but it helps me see if I'm on track to reach my saving goals, why I might be falling short, understand where I'm spending most, etc.
Post: Which financial tasks do you find most irksome?
Link to comment from April 8, 2021
Interesting point. What would you say is a decent management fee to pay for an active bond fund?
Post: Does it ever make sense to buy actively managed funds?
Link to comment from April 8, 2021