Massimiliano Schipani @massy87: "⭐𝐓𝐈𝐏𝐒⭐ Part 2 𝗧𝗶𝗺𝗲 𝗜𝗡 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁..."

Italy

⭐𝐓𝐈𝐏𝐒⭐ Part 2 𝗧𝗶𝗺𝗲 𝗜𝗡 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗶𝘀 𝗯𝗲𝘁𝘁𝗲𝗿 𝘁𝗵𝗮𝗻 𝗠𝗮𝗿𝗸𝗲𝘁 𝗧𝗶𝗺𝗶𝗻𝗴 I don't think we would want a manager who, based on macroeconomic data or other things, thought he could get liquid and then re-enter when liquidity is no longer advantageous. Since we ourselves can't do it." To Munger's thoughts on market timing, Warren Buffett's is added, "I don't think we've ever made a decision in which one of us said or thought: we should buy or sell based on what the market will do." If over 90% of active management (large funds with huge capital, first-hand data, teams of analysts) does not beat the market on horizons greater than 3 years there will be a reason, for the investor it would be better to focus on the returns offered BY the market, it would do much better than most investors. 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐝𝐨 𝐧𝐨𝐭 𝐜𝐨𝐦𝐞 𝐟𝐫𝐨𝐦 𝐚 𝐩𝐫𝐨𝐝𝐢𝐠𝐢𝐨𝐮𝐬 𝐦𝐢𝐧𝐝, 𝐛𝐮𝐭 𝐟𝐫𝐨𝐦 𝐚 𝐦𝐞𝐧𝐭𝐚𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐭𝐡𝐚𝐭 𝐚𝐯𝐨𝐢𝐝 𝐦𝐚𝐣𝐨𝐫 𝐦𝐢𝐬𝐭𝐚𝐤𝐞𝐬. Humility in the markets, "knowing that you don't know", and focusing on a few things that you know perfectly rather than on many things that you know little about. The focus on certain businesses and companies is one of Charlie Munger's secrets. Think of the myriad of investors literally swept away by the Bear Market of 2022, after thinking they were geniuses of finance in 2021 (when anything was rising). Very often, especially in the new generations, there is a tendency to invest in highly technological businesses, of which however we know less than 1% of the business practiced by the company. Therefore, in difficult times, many investors see prices falling and are unable to fully understand the potential for recovery of their investment, simply because they don't know how it works. Understanding what you are buying and having the humility to understand that we can't know everything, will greatly help us in negative periods. If you can't handle a portfolio with a 40/50% drop, then you shouldn't invest If you get caught up in panic, then you will lose. You need to focus on the long term especially in times of strong market declines, stay rational and ignore mass hysteria. Staying rational in periods of strong volatility is essential to avoid investing in the grip of emotions. And it is necessary to know the functioning of the market, understand that declines are an integral part of the nature of the stock market. Learning to coexist with this nature is essential if we want to invest well. $QQQ (Invesco QQQ) $SPY (State Street SPDR S&P 500 ETF) $SPX500 $NSDQ100

Not investment advice. The author may have financial interests in the mentioned instruments.