I lost my home in 2008 while working as a financial planner. Knowing the right thing and doing the right thing are very different.
The behavior gap — the distance between what we should do and what we actually do — is the biggest cost in investing.
Trend following works because people are slow to adapt. Markets trend because humans herd.
The most important single factor in shaping security markets is public psychology.
Investors cash in their good stocks to hold their losers. It is like cutting your flowers and watering your weeds.
The hardest part of investing is not finding the best stocks. It is managing your own behavior.
The average investor would be significantly better off if they indexed everything and stopped reading the financial press.
The most important attribute of a successful investor is behavior, not intelligence.