“Buying funds based purely on their past performance is one of the stupidest things an investor can do.”<\/span><\/p>\n\n\n\nI love both of these because the really talk about the\nmindset and philosophy of an investor. \nIf you can\u2019t stomach the very realistic possibility of losing not only\n20%, but 50% of your portfolio, you need to not be in stocks. And if you ignore that advice then you will\ninevitably sell low, let the market rebound, and then end of buying in much\nhigher \u2013 not good.<\/p>\n\n\n\n
And the second quote is a great reminder to me personally being so number focused. I tend to really rely on the numbers, data and past performance of a company but that\u2019s nothing more than the past. Sure, it\u2019s a great indicator of how a company performs, but it\u2019s definitely not a for guarantee for the future. <\/p>\n\n\n\n
Past performance is absolutely important, but you need to do your due diligence to looking at where the company plans to go in the future, and a lot of that is going to be qualitative data, which admittedly is hard for me to utilize, but something that is absolutely pertinent in your philosophy if you want to be a successful investor!<\/p>\n\n\n\n
So, there you have it \u2013 my Mount Rushmore of the Greatest\nFundamental Investors in the Stock Market! \nIf you were to replicate your investing philosophy after any one of\nthem, even index funds, you won\u2019t go wrong, just beware that you know what is\nin that index fund when you buy it and continue to monitor it.<\/p>\n\n\n\n
My recommendation to you is to create your own Mount Rushmore! And I don\u2019t mean just put four names on a piece of paper, I mean really go out and learn as much as you can about all investors out there and see what investor philosophies really stick and make sense to you. <\/p>\n\n\n\n
The best way to learn is from others, and almost all of these investors have books published or a ton of content about their strategies that you can easily learn from.<\/p>\n\n\n\n
The ball is in your hands. \nAre you going to pass or are you going to take your shot?<\/p>\n","protected":false},"excerpt":{"rendered":"
Everything that Andrew and Dave preach on the podcast, and something that I have learned from them and quickly adopted, is the importance of understanding the numbers when investing so that we can be disciplined fundamental investors. I mean, Andrew and Dave have really coined the term to \u201cinvest with a margin of safety, emphasis […]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[5963,3],"tags":[],"yst_prominent_words":[1241,1350,1343,1203,1179,1206,1242,1256],"_links":{"self":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10410"}],"collection":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/comments?post=10410"}],"version-history":[{"count":1,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10410\/revisions"}],"predecessor-version":[{"id":20969,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/10410\/revisions\/20969"}],"wp:attachment":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/media?parent=10410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/categories?post=10410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/tags?post=10410"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/yst_prominent_words?post=10410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}