From Morgan Housel at Collaborative Fund: Above-average results require not being afraid of looking wrong. Most people are afraid of looking wrong. Good investing is 50% psychology, 48% history, 2% finance. Great investing is 40% skill, 20% luck, 40% inability to tell which is which. Bad investing is 40% overconfidence, 40% fees, 20% denial that keeps it all going. Getting rich is hard. Staying rich is harder. Being satisfied with your riches is hardest. Some good advice is simple but made complicated because professionals can’t charge fees for simple stuff. The fact that you can’t charge fees for it is part of what makes it good advice. Wealth is what you don’t see — money that hasn’t been spent, cars that haven’t been bought, jewellery that hasn’t been purchased. Most people can afford not to be a great investor. Most people can’t afford to be a bad investor. The combination of the last two is the foundation of investing risk. Past results cause confidence to rise faster than abil...
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