Successful people understand that the path to success is often found as a result of mistakes made along the way. Mistakes are simply a way for life to tell us that we’re not headed in the right direction and to adjust our aim accordingly.
They're not meant to tell us that we should give up on our dreams but unfortunately, too many people misinterpret these signals as a STOP sign.
Many investors gave up on investing in stocks altogether after suffering painful financial losses as a result of the dot com crash. There’s no doubt many more investors will give up on investing in stocks after the recent financial crisis as the market declined over 50% from October 2007 to March 2009.
Yet, the signal they were getting after the dot com crash was that they needed to learn to invest the right away instead of speculating on internet start-ups with a shaky balance sheet and unproven business model, or jumping on the bandwagon because “uncle Bob, my neighbor and everybody else is making a killing”.
Another signal investors should be getting after this Great Recession is that they need to be mindful of asset allocation and not be fully invested in equities when stocks are overvalued.
Thankfully, since I was young and didn’t have a lot of money to invest during the Internet boom, I didn’t lose as much money as I could have.
But I did learn from my mistakes and took full advantage of the recent market downturn to invest large sums of money in early 2009 as panic and fear took over the financial markets and solid companies were being given away at ridiculous prices.
Those who cannot learn from their mistakes are doomed to repeat them. On the other hand, investors who learn from their mistakes are wise and will do well over time.
The more you know, the more you grow. The more you learn, the more you earn.
Related posts:
Learn From Other People's Mistakes and Get a Head Start
They're not meant to tell us that we should give up on our dreams but unfortunately, too many people misinterpret these signals as a STOP sign.
Many investors gave up on investing in stocks altogether after suffering painful financial losses as a result of the dot com crash. There’s no doubt many more investors will give up on investing in stocks after the recent financial crisis as the market declined over 50% from October 2007 to March 2009.
Another signal investors should be getting after this Great Recession is that they need to be mindful of asset allocation and not be fully invested in equities when stocks are overvalued.
Thankfully, since I was young and didn’t have a lot of money to invest during the Internet boom, I didn’t lose as much money as I could have.
But I did learn from my mistakes and took full advantage of the recent market downturn to invest large sums of money in early 2009 as panic and fear took over the financial markets and solid companies were being given away at ridiculous prices.
Those who cannot learn from their mistakes are doomed to repeat them. On the other hand, investors who learn from their mistakes are wise and will do well over time.
The more you know, the more you grow. The more you learn, the more you earn.
Related posts:
Learn From Other People's Mistakes and Get a Head Start
No comments:
Post a Comment