1. That no one can accurately predict the market:
- in advance,
- consistently,
- or for decades at a time.
2. That trying to pick individual stocks or active managers is a loser’s game. Winners buy the world in bulk at a fair price and let capitalism work its magic.
3. That delegating the activity and attention of my personal investing to someone that knows me:
- is liberating,
- has higher expected returns, and
- frees me to pursue my unique abilities.
4. Investing based on the data and evidence shown in decades of market returns and peer-reviewed academic research beats:
- picking stocks,
- gurus,
- black boxes, and
- Las Vegas.
5. Focusing on the things that matter and that I can control are most important, e.g.:
- asset allocation,
- spending, and
- investment expenses.
6. That managing my investing behavior is MORE important than tracking short-term investment performance.
7. That there will always be an apocalypse du jour, so “taking the long view” reminds me that the multi-decade trend of the global stock market is UP.
