Before we get to the nine expert investors I asked for advice, I wanted to share my own thoughts – what investment advice would I give? What would I do if a time machine appeared and the one condition for using it was to spread investing knowledge? I’d probably tell my younger self to stop expecting short-term results.
We’ve already discussed the risks we can encounter in life and the importance of protecting ourselves against them. This is a sentiment that Brian Kehm, founder of Frugal Fortunes, echoes. After achieving a double major in accounting and finance, Brian traveled the world, so it’s fair to say he knows a thing or two about taking risks! He’s also completed his CFA exams, giving him an impressive foundation in finance.
Everyone knows we’re supposed to save money — but most people don’t view it as their top priority when formulating their investment strategy. AJoshua Holt, a private equity M&A lawyer who is the author behind Biglaw Investor, thinks this is a huge mistake. The prospect of getting a high annual return might sound sexy or exciting, but it’s not the most important number for us to consider.
As I touched on in #1, you need to know the “why” behind your investment decisions. Instead of getting trapped into the game of trying to make as much money as possible, think about what you want to use that money for. Bob Lai, the blogger behind Tawcan, realized that he wasn’t living life for himself a while ago. Now, he’s on a journey toward financial independence via dividend & ETF investing, with the ultimate goal of a more joyful life.
Whether the focus is on your life goals or your investing techniques, there’s a common thread among the pieces of advice so far, and that’s to think about what you want in the long term. Instead of trying to find that magical investing technique that will earn you fantastic returns, it can pay dividends to just be sensible. Besides, being too much of a perfectionist can lead to unwise decisions when things go wrong.