Rate Of Return
Total Assets100-Day Reading Sharing Plan — Day 76
A Random Walk Down Wall Street
1. Either reinvest dividends into asset classes whose weight has become too small, or allocate newly deposited cash into asset classes whose weight has become too small.
2. Realized losses from selling positions at a floating loss can offset capital gains realized elsewhere in the portfolio.
3. Telling investors there's no hope of beating the average index is like telling a six-year-old there's no Santa Claus. It robs them of the joy of living.
4. In the end, investing is truly an art. You need a certain talent, and you also need the appearance of a mysterious force called luck. In reality, the very few people who beat the average index likely achieved success 99% due to luck.
5. They tell me they've benefited greatly from adopting my simple advice, which has remained unchanged for 50 years. Timeless lessons include: diversify broadly when investing, rebalance the weights of asset classes within the portfolio annually, use index funds, and stick with it all the way through.
$Novo Nordisk AS(NVO.US)$Cleveland Cliffs(CLF.US)$Amazon(AMZN.US)
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