1. Accept That Uncertainty is the Rule, Not the Exception.
When building long-term wealth, periods of uncertainty are the rule, not the exception. But, despite the uncertainties, it is important to understand that the long-term movement of the stock market is always upwards.
2. Focus on What is Important and Knowable.
Since uncertainty is the rule, not the exception, it is important to focus on what is important and knowable instead of important and unknowable.
Such an investment approach can help uncover investment opportunities during many different market, economic and political conditions.
3. Be Patient
Buy and Hold is the best way to build long-term wealth. Such approach also filters out the noise and allow the power of compounding to help build wealth.
4. Expect Periods of Disappointment
Even the best investor or fund manager in the world will go through periods of disappointing performance. It is normal part of investing cycle. Accepting this fact will reduce the likelihood of engaging in unhealthy investing behaviour of making unnecessary modifications and adjustments to your long-term investment strategy.
5. Historically, Period of Low Returns for Stocks Have Been Followed by Periods of Higher Returns
Therefore invest when prices are low. This requires no further elaboration :-)
When building long-term wealth, periods of uncertainty are the rule, not the exception. But, despite the uncertainties, it is important to understand that the long-term movement of the stock market is always upwards.
2. Focus on What is Important and Knowable.
Since uncertainty is the rule, not the exception, it is important to focus on what is important and knowable instead of important and unknowable.
Such an investment approach can help uncover investment opportunities during many different market, economic and political conditions.
3. Be Patient
Buy and Hold is the best way to build long-term wealth. Such approach also filters out the noise and allow the power of compounding to help build wealth.
4. Expect Periods of Disappointment
Even the best investor or fund manager in the world will go through periods of disappointing performance. It is normal part of investing cycle. Accepting this fact will reduce the likelihood of engaging in unhealthy investing behaviour of making unnecessary modifications and adjustments to your long-term investment strategy.
5. Historically, Period of Low Returns for Stocks Have Been Followed by Periods of Higher Returns
Therefore invest when prices are low. This requires no further elaboration :-)
