445 | Fundamental Truths of Investing | Brian Feroldi

In this episode: investing, losing money hurts, pessimism, optimism, index funds, psychology, history, and building wealth.

Whether you're a confident investor or weary of playing the market, there is still a lot to be learned when it comes to your investments. This week we are re-joined by friend of the podcast Brian Feroldi to discuss important truths and takeaways he’s learned as a decades-long investor, from navigating the psychology and history of the market, to focusing on longevity and simplicity rather than getting rich quick. When listening to this episode, remember that playing the market doesn’t have to be a complicated game, and no one should feel un-equipped to invest! Just be sure to understand that investing will never be a perfect journey, and preparing yourself for low points may help you make better decisions in the long run!

Brian Feroldi:

• Website: brianferoldi.com
• Twitter: @brianferoldi
• Book: “Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren’t” By Brian Feroldi

Timestamps:

• 0:41 - Introduction
• 4:27 - You Will Be Wrong
• 9:45 - Losing Money HURTS
• 12:54 - Humans Are Naturally Bad Investors
• 16:09 - Pessimism And Optimism
• 20:22 - The Power Of Index Funds
• 22:31 - The Power Of History And Psychology
• 24:45 - Avoiding Ruin Is A Skill
• 28:56 - Keeping It Simple
• 35:24 - To Build Wealth, You Need To Invest
• 37:50 - Conclusion

Resources Mentioned In Today’s Episode:

• "Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger" by Charles T. Munger
• "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel
• "Expectations Investing: Reading Stock Prices for Better Returns" by Michael J. Mauboussin
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