Hi friends,
Welcome to another issue.
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We admire a lot of people for different reasons. So here is a small exercise.
Choose a person you admire and imagine that you are that person. Like you switched bodies with that person. You are that person, good at what they are good ay and bad at what they are bad at.
PS: Please reply with a person you would consider changing your body with and why.
For me, that person would most likely be Charlie Munger.
Here is the thing, no matter how amazing the person looks to you, once you are in their body you realize that not everything is as perfect as you imagine it to be. But as long as you are in their bodies, you have to deal with what they deal with. You don’t get to cherry-pick. You get the whole package.
When you look at people that way, you tend to see that it is not all glamorous
Not just the glam, you begin to understand that there is a reason for the process. You can’t be that person without going through the process they went through.
All the people we admire did not just wake up one day to be who they are, they put in the work. They did the hard work and trusted the process.
In investing, like anything worth doing, you can get lucky. For you to be truly good at it, you have to be consistent and watch all the seasons. The ups and the downs. The bulls and the bears.
Time in the market is you trusting the process. When you spend more time in the market, you are invested through the bulls and bears. A friend says it’s character development.
“Data shows that if you miss the best 10 days in the stock market, your potential return will be cut by half to 3.35%, and if you miss the best 20 days, you are more likely not to make any returns at all.
On the other hand, if you stayed invested throughout all the rough times and good times, you would have made 7.47%.”
Investing through the bulls and bears beats waiting to get in at a particular time and jump out at another.
Even though it is not possible for you to be right always, but for the sake of argument, it prevents you from seeing the two sides of the coin. This makes you vulnerable and fragile.
Any future mistake could wipe you out.
“Adversity reveals genius, prosperity conceals it.” — Horace
Time in the market is more important than timing the market. The probability of reliably predicting market movement ranges from tough to impossible. The majority of investors would do well if they can just hold on to their investment and not panic sell.
Pictures
Readings
Time Billionaires: This concept is important and it addresses how we see and spend time.
How to Be Great? Just Be Good, Repeatably
Tools
The ultimate creator resources
That wraps it up for this week.
If you want to discuss any of the ideas mentioned above or have any books/papers/links you think would be interesting to share in a future edition, please reach out to me by replying to this email or sending me a direct message on Twitter at @iamuhammadtahir.
Until next week, take care!
Muhammad Tahir.