For people with less than 20K asset, I usually tell them to stay away from stocks if they know nothing about it. Human are born to be averse to losses. It's 3 times more painful to lose $100 than the amount of joy you have when you make $100. That is, if you actually care about that $100. Lottery is the complete opposite example but because $2 is almost like nothing to most people and the reward is so out of proportion, people don't mind losing $2 every time they buy a ticket. This is actually the mindset we should have when we invest in stocks. Of course I don't put all my eggs into the market. So if I lose 100% of what I put in, so be it.
For people with more than 20K of asset, you don't gain nothing when you lose a few grands or hundreds of grands. Hopefully you learn a lesson and this lesson should serve you well in the future. Some people who got burned in the 2001 crash never bought stocks again. So they have avoided the latest crash in 2008.
I hope you now see the difference between an individual investor and a fund manager. A fund manager only cares about the performance of his fund and the actual return. That's why so many fund managers would rather just mimic the major indices. There's no incentive to do the right thing for his clients.
There have been some great fund managers in history, like Peter Lynch or George Soros, but they are certainly a rare breed. |
發表於 2010-1-5 11:24
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。。。係架﹐投資之馬﹐係呀﹐係唔使賺錢架 