A short time ago, I shared some things a new investor might want to know or be mindful of as they start their financial freedom journey. On that note, I believe some investing advice never goes go out of style, there are some investing truths to behold.
Here are my investing truths you can take to the bank:
- All investing is subject to risk – even the safest investments have some risk.
- Past performance is not a predictor of any future result.
- In a diversified portfolio gains from some investments will help offset losses from others.
- No matter how good you think you are as an investor, you cannot control your portfolio’s returns.
- In order of long-term returns, cash has appreciated less than bonds and bonds have appreciated less than stocks.
- The stock market is very unpredictable in the short-term but rather predictable in the long-term.
- Every investor should focus on limiting mistakes because there is no perfect portfolio.
- Somebody will always outperform you – accept it.
Do you have any investing truths to share?