Have you heard about drownproofing? It’s a training exercise used by Navy SEALS.
Your feet are tied together.
Your hands are tied behind your back.
Then you’re pushed into a swimming pool.
Yikes.
So what happens when you’re tied up and pushed into deep water? The natural reaction is reaction. You thrash around trying to keep your head above water.
Counterintuitively, the way to survive the drowning is not reacting.
You calmly sink to the bottom of the pool,...
What’s the best country to live in?
Ask 10 different people and you get 10 different answers.
It’s like asking, “What’s the best investing strategy?” There’s no right answer. No wrong answer. Just different answers. A function of who you ask.
A stock picker says stock.
A realtor says rental property.
An indexer says an index fund.
A venture capitalist says startups.
A dividend investor says dividend stock.
The American author F. Scott Fitzgerald maybe said it best:...
When you’re young you often take big dumb risks. You just don’t know it at the time. Most times you don’t get hurt.
Hopefully, as you get older, you realize this. That just because you didn’t get hurt doing something dumb doesn’t mean you didn’t take a big risk and get away with it.
When I was 28 years old I flew to Ghana. It’s a small west African country. I traveled the country by bus.
One...
Maybe the biggest mistake investors make is buying shares of Apple or Zoom or whatever and then hoping the price goes right up.
It’s why you sometimes hear that the stock market is just a big casino.
Because some investors are just buying “prices” and then hoping to sell their prices at some higher price to someone else who’s then hoping for the exact same thing.
Which is gambling.
A more reliable way to make money investing is...
You’re at a blackjack table in Las Vegas.
The guy sitting next to you has a 10 of hearts and 7 of spades. Now, everyone knows when you have 17 that you stand, but this guy asks the dealer for a hit.
The dealer flips over a 4, and so the guy gets 21. Blackjack!
Nice hit, huh?
Well, the casino loves gamblers like him, because if someone always hits on 17 they’ll lose money. The probability of...
