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I Can't Beat This

This week, I plagiarize.

With noted credit to Daniel Crosby, with this amazing Twitter thread. There's so much wisdom in this I couldn't NOT pass it along in its entirety. Read it slowly. (I asked for permission to share, and he was gracious enough to say Yes, as long as I provided links to his books The Behavioral Investor and The Laws of Wealth. Both of which are on my to-read list.)


The Joneses aren't as rich or happy as you think

Get rich quick and get poor quick are sides of the same coin

Your life is a better benchmark than the S&P 500

The more complicated the investment advice, the more expensive and the less useful

Spend less than you make. Always

Ask about anything you don't understand

There is no such thing as job security

A house is a place to live, not an investment

No one knows what is going on with the economy

The only sure thing about stocks is that there are no sure things

Stocks tend to pay well because they are so volatile

Your mortgage broker is lying to you about how much house you can afford

A raise in income shouldn't mean a raise in lifestyle

Forecasting is for weather people

Never reach for yield

Fees erode performance

Excess is never permanent

You will never have "enough" money

There is an inverse correlation between performance and time spent watching financial news

If it depreciates, don't pay interest on it (I'm looking at you, cars)

You don't have to be rich to invest, but you have to invest to be rich

Invest in your mind and your skills first

Infrequent splurges bring the greatest happiness

If it seems too good to be true, it is

Einstein never said that thing about compound interest but it's still magical

If you're excited about an investment, it's probably a bad idea

A penny saved is more than a penny earned

Market corrections come more regularly than birthdays - expect them

Debt is a four letter word
Interesting Resources 

1. Harvard Business Review - How to Know If You Talk Too Much
*raises hand* Guilty. Since reading this, I've literally tried to only speak 20 seconds at a time when in conversation. It is really, really hard. This article unpacks some research into the fact that we actually get "high" through a dopamine release when talking about ourselves. Gabby people keep gabbing because they become addicted to the pleasure. Evidently when we speak for 20 seconds we have a green light, the next 20 seconds is a yellow light, and the remaining time can be a red light if we're not engaging our conversation partner. This sentence really struck me: "One reason some people are long-winded is because they’re trying to impress their conversational counterpart with how smart they are, often because they don’t actually feel that way underneath." Yikes. 

2. Evidenced Based Investing - What I Learned from Five Crashes 
Perspective is always good. Although I was alive for all five crashes mentioned in this article, I wasn't necessarily paying attention. So reading the thoughts of someone who I respect and who was practicing during the market "crashes" since 1987 is valuable, and I think it will be for you, however far along you are on your investment journey. Things that seem absolutely, positively disastrous and permanent at the time have a way of working themselves out if you remain the course. And we as humans have the stubbornness to not learn. 
Two things as I wrap up this week:

1- What from Daniel's manifesto resonated with you the most?

2- I'm going to start a little addition to Fident Friday. So many of you have so many amazing responses to these weekly letters that I want to start sharing them with others (with your permission, of course). I'll do this through a short video format - reading your responses (initials only, confidentiality and such) and reflecting more on the thought. I'm not ready to make this a weekly commitment, but be on the lookout for some Fident Friday recaps in the future. 

Gratefully,
Jeremy
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