If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It's the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you'll be miserable.
Interpretation
Constantly checking on stock performance can lead to unnecessary stress and worry.
This quote emphasizes the importance of a long-term perspective when investing in stocks. Daniel Kahneman points out that being overly focused on short-term fluctuations can lead to anxiety and unhappiness, suggesting that investors should avoid monitoring their investments constantly to maintain a healthier mindset and encourage a more productive approach to their financial goals.
In practice
During a financial seminar discussing investment strategies.
We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision.
The average investor's return is significantly lower than market indices due primarily to market timing.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Laziness is built deep into our nature.
Through some combination of culture and biology, our minds are intuitively receptive to religion.
You are more likely to learn something by finding surprises in your own behavior than by hearing surprising facts about people in general.
I avoid grandiose plans. I start with a small piece that I can do. I go to the root of the problem and then work around it. It's building brick by brick.
Blessed is he who has found his work; let him ask no other blessedness.
A great restaurant doesn't distinguish itself by how few mistakes it makes but by how well they handle those mistakes.
You build a successful career, regardless of your field of endeavor, by the dozens of little things you do on and off the job.
Nothing succeeds like success. Get a little success, and then just get a little more.
I know it's not the most important thing for me to win the most Grand Slams and be remembered in this world. I certainly don't have to win little tournaments here, there and everywhere, I don't have to win at all. Although I do want to.
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