Monday, August 04, 2014

Coffee Break-Interesting Web Links from Jim Parker

It might have been the ancient Chinese philosopher Confucius who once said that life is really quite simple, but we insist on making it complicated. Investing is similar, with most of the key lessons fairly straightforward.
In this week’s Coffee Break, we focus on some key truths about investing and ask why people so often insist on overlooking them for opaque and complex alternatives.

One myth that people cling to is that somewhere out there is a Tiger Woods of money management. But the fact is no champion can stay on top forever. What’s more, there can be no return without risk. In this article, a veteran broker lists seven fundamental truths about investment.

Many of our money worries are self-inflicted. We spend emotional capital worrying about things we can’t control and forget about what’s really important to us. In this article, Carl Richards shows how “letting go” and stopping seeking to control everything can improve our sense of financial balance.

Many of the problems we experience in investment originate from our belief systems getting out of whack with reality. We have a knack for interpreting events through our own prejudices. In this article, Barry Ritholtz recommends at least recognising our own failings.

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