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Investing is a great skill to have. Starting with understanding different asset types, their histories, modern portfolio theory, diversification, tail risks of
by xiphias2 8y ago
Investing is a great skill to have.
Starting with understanding different asset types, their histories, modern portfolio theory, diversification, tail risks of all assets, how central banks and other banks work.
I believe the market can be beaten, but you have to have more financial knowledge than the average retail investor.
- thomas93 8y agoWhile this might be true, I think a more reasonable skill to acquire would be a better grasp of financial literacy. People spend an incredible amount of time accumulating capital, but many spend hardly any time learning to properly manage it, relying instead on financial advisers selling commission driven products. I think that it is often the mentality of trying to "beat the markets" that lead people to make poor financial decisions, when in fact the majority of the population would benefit from taking the time to obtain a fundamental understanding of their own personal finances.
- xiphias2 8y agoWe can say both are important skillsets (two sides of the same coin), so I won't argue with you :) Also maybe beating the market is not that important, but I was making a mistake of accumulating cash without investing it when I was younger. I didn't have spending problems though as I was frugal in my life (though being too frugal was a problem in itself as well).
- jsgoller1 8y ago+1 to this. Reading The Bogelheads' Guide to Investing was a game-changer for me.
- bionsystem 8y agoI would recommend Robert Shiller's course at Yale (available on youtube) which covers all those subjects + some.