If you have been investing in the market for a long time but are unaware of Brian Feroldi’s investing principles, it is time to reassess your learnings. The author of the much-acclaimed book “Why Does the Stock Market Go Up? Everything You Should Have Been Taught About Investing in School, but Weren’t” laments the ignorance most people show when discussing the stock market. This is because they are taught nothing about equity investments in their schools.
You cannot master personal finance nuances without enough experience in the market. Feroldi shares his timeless investing principles in a series of tweets.
If you want to build wealth, you have to invest
Don’t invest in stocks until you are ready; focus on financial wellness first
Dealing with volatility is so much easier when your personal finances are hyper-conservative
In the beginning, your savings rate is all that matters. Over time, your investment returns become all that matter
What’s risky in the short term is safe in the long term; what’s safe in the short term is risky in the long term
Earning high returns has a cost
Dollar cost averaging makes market timing irrelevant
The business and the stock are 0% correlated in the short-term, but 100% correlated in the long-term
Humans are born to be bad at investing, understand that your emotions are going to play all kinds of tricks on you along the way
Easy: Saying you can handle volatility
Hard: Actually, handling volatility
Invest. Don’t trade
Not all stocks are created equally, some become safer when they decline. Others become riskier
You can't know everything, define when you know enough to make a decision
I love stock investing, but never lose sight of what actually matters
You cannot dare ignore the basics of personal finance that can help you create wealth. For money to create money, you must know how and where to put your money to earn more money on it in the long run.