When the market is poor and people are anxious, I want to share some learning insights. After all, we all know that maintaining calm in the market and continuing to learn is the key to long-term success.
1. Manage your finances in a way that allows you to sleep well at night.
Some people cannot sleep well unless they earn the highest returns; others can only rest easy by making conservative investments. Everyone has their own ideas.
However, in terms of all financial decisions, 'Does this allow me to sleep well at night?' is the highest guiding principle that applies universally.
2. If you want to become a better investor, the most effective thing you can do is to increase your investment time.
Time is the most powerful force in investing; it allows small amounts of money to grow and can erase major mistakes. It cannot offset luck and risk, but it can help guide results toward the desired direction.
3. It's okay if many things go wrong. Even if you make mistakes half the time, you can still make a fortune.
Because a very small number of things can produce a very large number of results. No matter how you manage your finances, you should calmly accept that many things will go wrong. This is the way the world operates.
So when assessing performance, you should look at the overall investment portfolio rather than individual investment targets. It’s okay to have a bunch of poorly performing investments alongside a few that perform exceptionally well, and this is often the ideal situation.
Focusing on individual investment targets to judge their effectiveness can make winners appear better than they actually are, and make losers seem more regrettable than they are.
4. When things are running smoothly, try to find humility, and when things go wrong, try to find forgiveness/empathy.
Because the world is not always as good or as bad as it seems. The world is vast and complex, and luck and risk present the same reality, which is often difficult to discern.
When judging yourself and others, hold this mindset.
5. Use money to regain control over your time, as being unable to manage your own time severely affects your sense of happiness.
As long as you are willing, you can do what you want at the time you want, with the people you want. This is the highest dividend that exists in the financial field.
6. Become kinder and boast less.
No one cares about your possessions as much as you do. You might think you want a luxury car or an exquisite watch, but what you really want might be the respect and envy of others.
You are more likely to earn respect and admiration from others through kindness and humility rather than through sheer horsepower and high-end materials.