When the market is most valuable is not when everyone wants to buy stocks, but when even the auntie sweeping the floor next to you can tell you exactly how high a certain stock will rise. History’s repeated cycles of bull and bear markets tell us that when every person in the market is avoiding purchasing these assets, it is often when stock prices are at their lowest. If you look at things from a long-term perspective, market downturns are precisely the opportunity for value investors to pick good stocks. Therefore, you must know how to exit when the crowd is roaring, and enter when it is dark—that is true selling high and buying low.

The vast majority of financial planners do not genuinely care about your interests, no matter how friendly and kind they appear to be on the surface.

To stay financially safe, we must accumulate assets, not liabilities. The safest way to ensure lifelong security is to spend less and earn more, and then invest the remaining money rationally.

No matter how high a person’s salary is, if they cannot still live comfortably and pleasantly when they lose their job, it only proves that they are not truly wealthy.

At a minimum, one should meet the following two criteria to be considered “wealthy”:

  • They have the option to not work and do not have to worry about making a living.
  • Their investments, pension funds, or trusts can guarantee a return that is double the average income of a middle-income family in their country for life.

In the pursuit of wealth and the realization of financial independence, many people make a foolish mistake: they enjoy creating the illusion that they look rich, rather than becoming truly wealthy.

The best way to achieve diversification in a stock portfolio is to find a low-fee index fund.

They absolutely cannot beat the market; that simply will not happen.

Kahneman discovered through his research that human instinctive behavior negatively affects investment decisions, and he received the Nobel Prize precisely for this study. He believes that many people feel that as long as excellent fund managers are given enough time, they will be able to beat the market index.

You know when a mall is having a discount sale, so why wouldn’t you rush to buy when stocks are at “jump-off-building” prices?

Stock investing inevitably requires some luck, but in the long run, good luck and bad luck cancel each other out. To achieve sustained success, one must rely on skill and good principles.

Maintaining rationality secures an average return of 10%.

The stock market is like a manic little dog; you never know where it will run.

The simplest way to build a rational and diversified investment account is to utilize stock and bond index funds.

However, when the stock market enters an accelerating upward phase, everyone becomes ecstatic and obsessed with the profits brought by rising stock prices. At this time, most people disregard their bonds (if they hold them) and buy more stocks with all their might. Even many financial advisors become victims of this temptation. But this practice of setting aside the predetermined stock-to-bond allocation is precisely paving the road to disaster for themselves.

When you hold a stock market index fund, you actually possess something as real and reliable as the ground beneath your feet.

When manic investors meet manic stocks, a bubble appears.

Those who ignore the stock market “Bible” that states “profit growth is directly related to stock price growth” will ultimately lose everything.

The stock market after the “9/11” event was precisely the opposite of the stock market at the end of the 1990s. Although stock prices dropped like football-sized hail, corporate profits were hardly affected.

Many investors do not accept the fact that the stock market represents corporate profits. Fear and greed determine that the stock market is irrational in the short term. However, viewing the stock market as a collection of businesses benefits you in accumulating wealth. When corporate profits decouple from stock prices, that is your opportunity to get rich. The stock market after the “9/11” event was precisely the opposite of the stock market at the end of the 1990s. Although stock prices dropped like football-sized hail, corporate profits were hardly affected.

When the “Stock Market Sale” happens, rush to buy!

When the stock market reopened after “9/11,” where did I gather the money to “mass purchase”? I sold some of the bonds I held.

Most people still fail to fully utilize the wealth-creating opportunities created by short-term market dips. However, financial television channels relentlessly spread news of an impending financial collapse, the economic situation appears exceptionally difficult due to continuous deterioration, and the internet fearlessly publishes pessimistic market news. The combination of sensational media publicity and harsh reality forces us to face the most volatile stock market of the past decade. Unfortunately, most people easily surrender to the greedy, fearful self in the mirror. They like to buy when the market rises, but they hesitate when they see a discounted bargain.

As for the future, the only thing certain is this: we are destined to face unpredictable market volatility again. The market will either crash like a falling cliff or shoot straight into the sky like a rocket. But as long as we recognize that the stock market inevitably reflects corporate profits, we will not succumb to temptation and bear foolish risks, nor will we panic when the market falls. A rational and balanced stock-bond portfolio not only makes our investment account more solid and stable, but more importantly, it allows us to use the irrationality permeating the stock market to our advantage.

Highly attractive, desirable. Short-term bonds: Find a safe harbor for your money.

Short-term bonds: Find a safe harbor for your money.

The higher the interest paid by a corporate bond, the higher the associated risk.

When the stock market encounters a crisis, bonds may become the secret weapon protecting your wealth.

If a 30-year-old investor’s portfolio holds 30% in bonds and 70% in stocks, their goal should be to maintain this ratio. If the stock market plummets in a given month, the investor will find that the stock proportion in their portfolio is below the initially set 70%. In that case, when adding funds to the investment account, they should add the funds into stock index funds.