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.
Before dreaming about the future or marking plans, you need to articulate what you already have going for you - as entrepreneurs do.
When I was racing, I had learned that you can't set stock in public adoration or your press clippings. By the time I was 26, I'd heard crowds of 100,000 scream my name, but a week later they couldn't remember who I was. You're a hero today and a bum tomorrow - hero to zero, I sometimes say.
Starting and growing a business is as much about the innovation, drive and determination of the people who do it as it is about the product they sell.
The temple of fame stands upon the grave: the flame that burns upon its altars is kindled from the ashes of great men.
I appreciate all my fans, on all occasions, everyday of my life. Its your presence & your loyalty that has given me great strength
Show me a guy who can't pitch inside and I'll show you a loser.
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