Learning to Invest

Even God Couldn’t Beat Dollar-Cost Averaging (ofdollarsanddata.com). Logically, it seems like Buy the Dip can’t lose. If you know when you are at a bottom, you can always buy at the cheapest price relative to the all-time highs in that period. However, if you actually run this strategy you will see that Buy the Dip underperforms DCA over 70% of the time.

The Futility of Market Timing (albertbridgecapital.com). Even if you think you are better than average, you just aren’t going to get much out of it. Stop trying to pick the perfect time to invest. Just invest, and get back to work.

Peter Lynch on market timing (wisewealthadvisors.com). People spend an unbelievable amount of mental energy trying to pick what the market’s going to do, what time of the year to buy it. It’s just not worth it.

The Freakishly Strong Base by Morgan Housel. The power of compounding explained.

The Shallow Benefit of Deep Liquidity by Morgan Housel.

The more liquid an investment is, the lower return it will earn compared to similar investments that are less liquid.

Giving up some liquidity not only offers additional returns; it guards against investors’ temptation to misbehave, which is the single biggest problem in public markets.

7 reasons stocks are better than real estate (marketwatch.com). “Real estate is a younger person’s asset class. I had all the energy in the world in my 20s and 30s to buy and manage real estate,” he wrote. “Now that I’m in my 40s and have a wife and son to take care of, I simply do not have enough time or desire to manage real estate. A simple life is a happier life!”

Diversify your income: All my ideas for making money online (Medium). Few ideas for side-hustle.

Thumb Rules of Investing

12 Money Rules to Live By (money.com). We all have busy lives — sometimes, we just want an answer. If you’re tired of the “on the one hand this, on the other hand that” approach to financial advice, check out these guidelines I’ve collected over the years.

The Laws of Investing by Morgan Housel. A theme here is that investing is not just the study of finance. It’s the study of how people behave with money. So most of these “laws” describe a universal feature of how people respond to risk, reward, and scarcity.

Selectively Cheap by Ben Carlson. For me, this means being selectively cheap in certain areas while spending money in other areas that are important to me and my family. Everyone has different priorities in life. My goal is to spend money on the things that matter and then cut back everywhere else to strike the right balance between planning for tomorrow while also enjoying today.

Investing Ideas That Changed My Life by Morgan Housel. A few ideas that had a big impact on how I think about investing.

Books