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.
The secret of success is that it is not the absence of failure, but the absence of envy.
I am not satisfied in making money for myself. I endeavor to provide employment for hundreds of the women of my race.
Luck tends to come to people who are prepared.
It has been a long road. From a mountain coolie, a bearer of loads, to a wearer of a coat with rows of medals who is carried about in planes and worries about income tax.
Opportunity is latent in the very foundation of human society. Opportunity is everywhere about us. But the preparation to seize upon the opportunity, and to make the most of it, is to be made by every one for himself ... he will be self-made or never made.
A passionate belief in your business and personal objectives can make all the difference between success and failure. If you aren't proud of what you're doing, why should anybody else be?
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