Tonight I wanted to keep things simple by searching my treasure-trove of previous blog posts for a couple investment-oriented quotes to comment on. First, this is from an investing-themed post I wrote last year:
At the end of the day, it doesn’t matter what I think about where the market has gone or will go. I’m just along for the ride. My own thought processes are really just ways to soothe myself as the market does whatever it is going to do. In an up market, I will appreciate the growth in our portfolio balance. In a down market, I will appreciate getting deals.
Day 312: Along for the Ride, No Matter What
Commentary:
Nothing has changed. I am in exactly the same position, investing through thick and thin, with no illusions of knowing what will happen next, staying the course no matter what.
The end of the year featured an interesting surprise in the market: from the end of October on, the entire stock market (and bond market, for that matter) was on a buoyant upward trajectory. Interestingly enough, I made a rather significant portfolio change in one of our accounts right before this. Pretty much the day after, the market started rising. Score for lucky timing!
One more:
[W]hen I have tried to explain how compounding works to other people in my life, I have met with little success. It seems that understanding the power of investing is like certain acquired tastes or fads with cult followings: you either get it or you don’t.
Day 220: Compounding, You Either Get It Or You Don’t
Commentary:
This is just as true in my life as ever. However, there have been a few interesting developments in this regard. First, I gave an online presentation on the topic of communicating with others in your life about finances. Watch it here. Secondly, I have a friend who recently “got the good news” about index fund investing just as I did. He is very excited about the possibilities for his finances, and it has been fun chatting with him about it.