16 Rules for Investors to Live By by Morgan Housel in The Wall Street Journal.

my 3 favorites: (all are worthy and valuable tips)

Most bubbles begin with a rational idea that gets taken to an irrational extreme.

Dot-com companies did change the world, land is limited and precious metals can hedge against inflation. But none of these stories justified paying outlandish prices for stocks, houses or gold. Bubbles are so easy to fall for precisely because, at least in part, they are based on solid logic.

“I don’t know” are three of the most underused words in investing.

I don’t know what the market will do next month. I don’t know when interest rates will rise. I don’t know how low oil prices will go. Nobody does. Listening to people who say they do will cost you a lot of money. Alas, you can’t charge a consulting fee for humility.

You are only diversified if some of your investments are performing worse than others.

Losing money on even a portion of your portfolio is hard for some people to swallow, so they gravitate toward what is performing well at the moment, often at their own expense.

 

 

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