Saturday, March 23, 2019

Investing Won't Make You Rich (Probably)

Here is the link.

Investment will not make your rich

Point #1
You need money to

SpectremGroup value of the investor

Point #2

S&P500
9.8% last 10 years

For example, 10,000 dollars to invest, 9.8% return, it will take 51 years to get a million dollars. If you start from 15 years, you will get 66 years old.

$10,000 dollar invest, get 1 million in 10 years, annual return ~59%; you need to get those picks to get high return.

Point #3

6:44/ 13:47
Dalbar
S&P500: 7.68%
    Funds: 4.79%

7:25/ 13:47
Dalbar analyzed three factors:
- Capital not available to invest
- Capital needed for other purposes
- Psychological factors

Retention rate:
3.8 years

Loss aversion bias:
we worry about losing more money when price goes down.

Anchoring bias

Herding
Follow the decisions of other people

Regret aversion

11:30/ 13:47
Program educated or simple strategy






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