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1/ This is the 4th edition of the Sloth Sunday supplement.
Each Sunday I create a thread that contains insights from an investment book/shareholder letter.
These insights are taken from texts that have helped to shape the Sloth Investor’s approach to investing.
Each Sunday I create a thread that contains insights from an investment book/shareholder letter.
These insights are taken from texts that have helped to shape the Sloth Investor’s approach to investing.
2/ Morgan Housel’s book ‘The Psychology of Money’, released in 2020, has become a much celebrated text in recent months (rightly so).
However, I'm also a fan of Housel’s 2011 book ‘Everyone Believes It; Most Will Be Wrong’.
Let me now share my favourite take aways below
However, I'm also a fan of Housel’s 2011 book ‘Everyone Believes It; Most Will Be Wrong’.
Let me now share my favourite take aways below
3/ On TIME, the 4th bedrock principle of the Sloth Investor:
“You cannot time the market. Repeat that. Say it again.
Tattoo it on your chest.
This has always been true.
The world simply isn’t predictable.”
“You cannot time the market. Repeat that. Say it again.
Tattoo it on your chest.
This has always been true.
The world simply isn’t predictable.”
4/ On understanding the BEHAVIOUR of the stock market.
“It’s a nonevent for stock markets to swing 155 peak-to-trough every year. That’s the average…That’s what you should expect.
It’s just what markets do. They fluctuate.
This scares so many people.”
“It’s a nonevent for stock markets to swing 155 peak-to-trough every year. That’s the average…That’s what you should expect.
It’s just what markets do. They fluctuate.
This scares so many people.”
5/ On becoming BETTER, not BITTER! (love this).
“The big money to make is when markets are down….use the volatility to your advantage.
Don’t become bitter. Become better.”
“The big money to make is when markets are down….use the volatility to your advantage.
Don’t become bitter. Become better.”
6/ On ignoring the 
“The slave to the mentality is 1 of the surest roads to mediocrity, if not ruin.
Google’s IPO prospectus has a great quote. ‘A management team distracted by a series of short term targets is as pointless as a dieter stepping on a scale every 1/2 hour’.
“The slave to the
mentality is 1 of the surest roads to mediocrity, if not ruin. Google’s IPO prospectus has a great quote. ‘A management team distracted by a series of short term targets is as pointless as a dieter stepping on a scale every 1/2 hour’.
7/ On thinking in a TRANS-DISCIPLINARY way.
“The biggest challenges money managers come across have nothing to do with finance.
Psychology, cognitive biases, geopolitics, engineering, history, and even anthropology can be some of the most practical skill sets.”
“The biggest challenges money managers come across have nothing to do with finance.
Psychology, cognitive biases, geopolitics, engineering, history, and even anthropology can be some of the most practical skill sets.”
8/ On maintaining PERSPECTIVE:
“Over a lifetime, you’ll be tempted by incredible
years, and frustrated by agonizing 
years.
The trick is learning that the former doesn’t mean you’re a genius, & the latter doesn’t mean you’re being duped.
Both are just what markets do.”
“Over a lifetime, you’ll be tempted by incredible
years, and frustrated by agonizing years. The trick is learning that the former doesn’t mean you’re a genius, & the latter doesn’t mean you’re being duped.
Both are just what markets do.”
9/ On VOLATILITY:
“If you accept that putting up with volatility is what allows stocks 2 be the greatest wealth generator out of any asset class over long periods of time, then recent experiences shouldn’t change anything. Investing still makes sense.
It just isn’t 4 wusses.”
“If you accept that putting up with volatility is what allows stocks 2 be the greatest wealth generator out of any asset class over long periods of time, then recent experiences shouldn’t change anything. Investing still makes sense.
It just isn’t 4 wusses.”
