If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It's the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you'll be miserable.
Interpretation
Constantly checking on stock performance can lead to unnecessary stress and worry.
This quote emphasizes the importance of a long-term perspective when investing in stocks. Daniel Kahneman points out that being overly focused on short-term fluctuations can lead to anxiety and unhappiness, suggesting that investors should avoid monitoring their investments constantly to maintain a healthier mindset and encourage a more productive approach to their financial goals.
In practice
During a financial seminar discussing investment strategies.
We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision.
The average investor's return is significantly lower than market indices due primarily to market timing.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Laziness is built deep into our nature.
Through some combination of culture and biology, our minds are intuitively receptive to religion.
You are more likely to learn something by finding surprises in your own behavior than by hearing surprising facts about people in general.
In a competitive industry, only paranoid incumbents - those constantly striving for betterment - have any hope of surviving.
The gift of achievement is _x000D_ not the things you get, but the person you become.
I didn't have a career plan. But what I did was, whenever there was a door open and a new opportunity, I always looked into it and took a chance and walked through the door.
I was lucky enough to co-found a business in college that ended up with 400 employees, and I launched 20 different projects while I was there - a project a week.
A star can win any game; a team can win every game.
When I talk about money. All you see is the struggle. When I tell ya, I'm livin' large, you tell me, its trouble.
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