Words of Wisdom from Motley Fool Founders

I’m reading this book called “The Motley Fool Investment Guide” by David and Tom Gardner. Here are some of my favorite quote from the book. I might do a book review in the coming days.

  • Investment fees are falling, but investment costs are not: Index fund fees are nor zero. That pretty awesome, but the emotional cost of investing is high as ever. There are so many ways to get distracted (twitter, news sources, newsletters :P, etc). Most of these feed on greed, fear, and doubt.
  • Most investing success boils down to avoiding catastrophic mistakes: It’s much easier to avoid doing stupid things than improving something. 
  • Most investing mistakes and frustrations come from trying to run a marathon in an hour: This is the game of exponential and most of the gains in exponential growth is back-loaded, so give time to your investment strategy and decisions.
  • Progress happens too slowly to notice; setbacks happen too quickly to ignore.
  • Few things are more valuable than room for error.
  • “Don’t do anything” is the best advice for most people most of the time, but it’s not intellectually stimulating enough for many people to take seriously.
  • No one is smarter than the collective intelligence of millions of other investors. Some, however, are a little more patient and less emotional. That’s where the potential for “edge” is found.
  • There has never been a better time to be an investor: We’re living in the age of democracy of data. Data like the financial documents and annual reports used to cost tens of thousands of dollars are now available for free. It’s easier to be an intelligent investor today with just a little due diligence. 

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