50 Unfortunate Truths about Investing


I really like #13:

13. You don’t understand a big bank’s balance sheet. The people running the place and their accountants don’t, either.

Super article - thanks for sharing


this is so true. the amount of compartmentalization in large institutions is simply staggering

This is really depressing - and very true.

“The more comfortable an investment feels, the more likely you are to be slaughtered.”

Goddammit, now I can’t sleep. Ever. Thanks Housel.

Am I comfortable owning Berkshire?

Am I going to get slaughtered?

Panic. Panic. Sell sell sell.

But I sold, so I wasn’t really comfortable with it.

Was I?

This article, combined with some of my recent decisions make part of me want to pitch everything into a couple of index funds and be done with it. Missed out on the recent rally being mostly in cash from not having the time to really make decisions to invest in companies. Then when I do buy something it has an uncanny ability to decline after I purchase it. I lagged the S&P last year, which was a disappointing realization but beat the market the prior year so who knows…

Then you get to the problem of:

“The market has run up so much and I can’t understand why. It’s uncomrfortable for me to invest.”

“If you’re uncomfortable, then it’s probably the right thing to do.”

“Thanks, brain! You’re right, I should be comfortable jumping in, because it feels uncomfortable.”

“That’s what I’m here for, limbic system!”

“Great, I feel so much better. But now that I’m comfortable, doesn’t that mean I shouldn’t be invested.”

“Yeah that’s true, better hold off.”

“Great, so my initial fears were justified?”

“Yep, that’s what logic is all about!”

“But doesn’t that mean I am comfortable with my decision and should do the opposite?”

“Ah, F.T.S, I’m just putting everything in an index fund…”

I don’t think 2 years of track record is enough to determine your skill. That being said, your record sounds ok, if you underperformed the market during a large upwards movement like last year but beat a flat market the year before, it’s pretty strong IMO.

good one…Here’s another…

Netflix surged more than 50% on Jan. 24 from the previous day’s low. $1,000 invested in short-term call optionswould have been worth $2 million in less than 24 hours.


The “Investment one-liners” made me think about this.