Every now and then you stumble upon a good article on Motley Fool. One that grabbed my attention is If You Only Know 5 Things About Investing, Make It These. I normally don’t bother with articles like these but this one is pretty good. I think a more suitable title would have been less definitive: “Five good things to know about investing”.
The list is as follows – go read the article to get the full explanation and context:
- Compound interest is what will make you rich. And it takes time.
- The single largest variable that affects returns is valuations — and you have no idea what they’ll do
- Simple is usually better than smart
- The odds of the stock market experiencing high volatility are 100%
- The industry is dominated by cranks, charlatans, and salesman