by Tim Walsham, Claritas Wealth
We all know who Warren Buffett is. Legendary US investor. He’s also the source of a wealth of usable quotations!
Here he’s talking about the things that investors do to make things much more difficult for themselves.
The most obvious one is thinking that investing is all about picking the right stocks (company shares) in order to beat the broader market. “If I could only select the ‘winners’ in advance then I could achieve incredible marketing beating returns”.
This is really difficult if not impossible to do on a consistent basis. All of the data points to this.
By simply owning the entire stock market we can benefit from the incredible wealth creating vehicle that is capitalism. Let’s not get into the political rights and wrongs of capitalism but it is a tried and tested system for creating wealth.
We make it much more difficult by trading in and out of company shares trying to gain an advantage. It’s not as exciting but we can buy investment funds that will reliably deliver (at low cost) the returns produced by capitalism via the global stock market.
Over time, as long as we can withstand the inevitable ups and downs, the market will take care of the rest.
Patience is the required superpower!
Simple but not easy.
