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- What are the most important rules to follow when investing?<\/li>\n\n\n\n
- Why do rich people tend to have a neat appearance?<\/li>\n\n\n\n
- Do you think luck is important for success?<\/li>\n\n\n\n
- Is it fair to assume that the wealthy are more knowledgeable than the less affluent?<\/li>\n\n\n\n
- What is equity risk premium?<\/li>\n<\/ul>\n\n\n\n
Se volete che risponda a qualche domanda su Quora o YouTube, o se state cercando di investire, non esitate a contattatemi<\/a>, e-mail (advice@adamfayed.com) o utilizzare la funzione WhatsApp qui sotto.<\/p>\n\n\n\n
Alcuni dei link e dei video a cui si fa riferimento potrebbero essere disponibili solo nelle risposte originali.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
What are the most important rules to follow when investing?<\/strong><\/h2>\n\n\n\n
I principali sono:<\/strong><\/p>\n\n\n\n
1. Diversify and play the long game if you want to preserve wealth.<\/strong><\/p>\n\n\n\n
In comparison, be concentrated if you want to grow wealth more quickly.<\/p>\n\n\n\n
Simple example. Somebody who invests 60% in a diversified stock market, the S@P500 for instance, and 40% in bonds, is seldom down over 5\u201310 years:<\/p>\n\n\n\n
However, bonds perform worse than stocks long-term as per the graph below, and you are very unlikely to lose in the stock market if you invest for decades<\/p>\n\n\n\n
<\/figure>\n\n\n\n
So, being focused on higher performing assets when you are young, and then being more diversified when older, can make sense.<\/p>\n\n\n\n
Risk is not volatility.<\/p>\n\n\n\n
2. Focus on inflation and returns<\/strong><\/p>\n\n\n\n
Following on from the last point, many people think that volatility is risk.<\/p>\n\n\n\n
Therefore, having money in the bank isn\u2019t risky as it isn\u2019t going up or down.<\/p>\n\n\n\n
Nothing could be further from the truth. You face currency and inflation risk.<\/p>\n\n\n\n
If inflation is 5% per year and the bank is paying 2%, you are guaranteed to lose 3% to inflation.<\/p>\n\n\n\n
That isn\u2019t to mention the multiple banking crisis we have seen globally.<\/p>\n\n\n\n
Likewise, with stocks, real estate and bonds, it also makes sense to factor in inflation.<\/p>\n\n\n\n
3. Focus on time<\/strong><\/p>\n\n\n\n
How much is an hour of your time worth?<\/p>\n\n\n\n
How much is less worry to you worth?<\/p>\n\n\n\n
Automate the process of investing by setting up a direct debit, or use an advisor if time and hassle is important for you.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
Why do rich people tend to have a neat appearance?<\/strong><\/h2>\n\n\n\n
Many people have noticed the opposite.<\/p>\n\n\n\n
Both observations are true.<\/p>\n\n\n\n
The reality is, money removes the mask.<\/p>\n\n\n\n
When you have more money, status and power, you can do what you want more often.<\/p>\n\n\n\n
For instance, nobody will tell off the boss for dressing like a tramp, or for over-dressing, in the office.<\/p>\n\n\n\n
So, people tend to show their real character and preferences once they have money.<\/p>\n\n\n\n
This man liked to dress like a geek when he was a teenager and had nothing:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Therefore, just like other tech geeks, it shouldn\u2019t be a surprise that he wears a suit even less these days.<\/p>\n\n\n\n
This man makes Zuckerberg look over-dressed. He looks beyond scruffy.<\/p>\n\n\n\n
<\/figure>\n\n\n\n
He actually has a net worth of about $50m, despite claiming to be against the establishment.<\/p>\n\n\n\n
Over a decade ago, the biggest young footballers were Ronaldo, Messi and Rooney (believe it or not).<\/p>\n\n\n\n
Ronaldo is now even more flash than ever, with his own fashion line.<\/p>\n\n\n\n
Rooney looks like this:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
He has an estimated net worth of $170m.<\/p>\n\n\n\n
Messi probably looks scruffier today than when he was in his teens and early 20s as well.<\/p>\n\n\n\n
You can\u2019t change people\u2019s character.<\/p>\n\n\n\n
Success and wealth merely makes people feel more comfortable about being themselves.<\/p>\n\n\n\n
What is true, however, is that people who haven\u2019t quite made it feel the need to dress up and show off.<\/p>\n\n\n\n
You see it in the finance industry a lot.<\/p>\n\n\n\n
People wearing flash suites, and having even flashier offices.<\/p>\n\n\n\n
You don\u2019t need to \u201cdress to impress\u201d if you have made it.<\/p>\n\n\n\n
It merely becomes a choice.<\/p>\n\n\n\n
Ditto in fancy restaurants and bars.<\/p>\n\n\n\n
The people who are dressed up and ready to post on Instagram often have less than the person who isn\u2019t taking any pictures, and dressed down.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
Do you think luck is important for success?<\/strong><\/h2>\n\n\n\n
Here is billionaire Mark Cuban admitting that if he was born five years sooner, or later, he might not have been so successful:<\/p>\n\n\n\n
Randomness is a huge part of success.<\/p>\n\n\n\n
With that being said, it isn\u2019t the only parts of success of course.<\/p>\n\n\n\n
Look at Cuban\u2019s case.<\/p>\n\n\n\n
Yahoo bought his company for 5 billion+.<\/p>\n\n\n\n
He couldn’t sell his stocks too soon, so he purchased put options.<\/p>\n\n\n\n
That decision saved him from the bloodbath that was Yahoo\u2019s share price plunge in the early 2000s.<\/p>\n\n\n\n
What is more, if he thought that luck was the most important aspect, he probably would never have started the business to begin with.<\/p>\n\n\n\n
You sometimes make your own luck.<\/p>\n\n\n\n
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