A summary of what I have learned over the past year

1. Having $100K saved and invested 5 years earlier will make you 1.2 million richer when
you retire. This's the power of compounding.
HAVING 2 MILLION IN YOUR ACCOUNT BY 65 ISN'T SO
DIFFICULT.
The average annualized return since the inception
of the Standard & Poor's 500 Index fund is 11.8%
(data from Investopedia).
You only need to save $100,000 at the age of 35~40, and invest it in
an S&P 500 index fund.
The earlier, the better.

2. Charlie Munger
“The first $100,000 is a bitch, but you gotta
do it. I don’t care what you have to do – if it
means walking everywhere and not eating
anything that wasn’t purchased with a
coupon, find a way to get your hands on
$100,000. After that, you can ease off the
gas a little bit.”
– Charlie Munger, legendary investor and billionaire
HAUL YOUR ASS FOR THE FIRST $100K, AND INVEST IT
IN AN S&P500 INDEX FUND, IT WILL CHANGE YOUR LIFE.

3. Warren Buffet
In 2007, Warren Buffett made a $1 million bet that an S&P 500
index fund would beat the returns of an actively managed hedge
fund over 10 years -- and he won in a landslide.
WHY YOU DON'T NEED A FINANCIAL ADVISOR?
“In my view, for most people, the best thing is to
do is owning the S&P 500 index fund. There are
huge amounts of money people pay for advice
they really don’t need.”
– Warren Buffet, one of the most successful investors in history

4. “The stock market is a device for
transferring money from the
impatient to the patient”
- Warren Buffet
“I nvest for the l ong haul . Don’ t get too greedy and don’ t get too scared. ”
- Shel by M. C. Davi s
WHY YOU SHOULD BE A LONG-TERM INVESTOR?
S&P500 ETF always outperforms bonds in the long-term, i. e. 10-
30 years investing horizon, by a huge margin.

5. Warren Buffet
WHY INVESTING IN AN S&P 500 INDEX FUND IS
SAFER THAN BONDS IN THE LONG TERM?
In the short run (1-3 years), bonds are safer, but in the long run, they are
riskier because their performance is always much worse than the S&P500
index fund if you have 10 years or more until retirement.
"It is a terrible mistake for investors with long-term
horizons -- among them, pension funds, college
endowments, and savings-minded individuals -- to
measure their investment "risk" by their portfolio's ratio
of bonds to stocks. Often, high-grade bonds in an
investment portfolio increase its risk."
--Warren Buffet

6. WHY GREAT INVESTORS DON'T PANIC SELL
IN A BEAR MARKET?
“The first rule of investment is ‘buy low and sell
high’, but many people fear to buy low because of
the fear of the stock dropping even lower. Then you
may ask: ‘When is the time to buy low?’ The answer
is: When there is maximum pessimism.”
--Sir John Templeton
“More money has been lost trying to anticipate and protect from
corrections than actually in them.”
--Peter Lynch, legendary investor
Sir John Templeton

7. https://www.schwab.com/investing-principles
WHEN IN DOUBT, ZOOM OUT.
When you zoom out,
these are obvious
buying opportunities
in hindsight. But still,
most people were
scared during these
crises.
What would you do
in the time of a bear
market? Panic sell or
buy more?
“Be fearful when others are greedy and
greedy when others are fearful.”
--Warren Buffet

8. Chris Hohn
INVESTING IS MORE ABOUT EMOTION CONTROL.
“I don’t think investing is that hard. The hard part
of investing, as Warren Buffet said is temperament,
you need to have the right temperament.”
--Chris Hohn
“Most people get led astray by emotions in investing. They get
led astray by being excessively careless and optimistic when
they have big profits, and by getting excessively pessimistic
and too cautious when they have big losses.”
--Sir John Templeton

9. Peter Lynch
DON'T BUY INDIVIDUAL STOCKS IF YOU DON'T HAVE
TIME AND ENERGY TO DO RESEARCH.
“Never invest in a business you cannot understand.”
--Warren Buffet
“If you don't understand a company, if you
can't explain it to a 10-year-old in 2 minutes
or less, don't own it.”
--Peter Lynch

10. WHY TRYING TO TIME THE MARKET IS A BAD IDEA?
“We've long felt that the only value of stock
forecasters is to make fortune-tellers look good.
Even now, Charlie and I continue to believe that
short-term market forecasts are poison and should
be kept locked up in a safe place."
--Warren Buffet
“The odds that you will achieve long-
term success by actively trading or
timing the market round to zero.”
--Morgan Housel
Morgan Housel

11. JUST DO DOLLAR COST AVERAGING (DCA).
Dollar-cost averaging, a favorite practice of Buffett's mentor
Benjamin Graham, means investing a set dollar amount in the
same investment at fixed intervals over time.
Invest the same amount every year
and in just 7 years, your annual return
will exceed your annual contribution
given that you stay invested in the S&P
500 index fund.

12. https://tagstonecapital.com/investment-management/#investment-discipline
The growth of $1 from 1970 to 2021
Ignore the noise.
Press makes noise to sell advertising.
Markets fluctuate.
Stay focused on the inevitable upward trend in the long-term.