Bob - the World's worst investor

(Ben) #1

I have always found this fictional illustration helpful.

Last year I introduced my family to investing before the crash in October last year. I also told them about the Santa Rally that happens at the end of the year…

Thankfully I also told them about Bob and why today those who held on to their portfolio positions haven’t lost a thing and have actually made returns. Every sea gets stormy, but if you stay in the ship and ride the waves you will reach the land in one piece.

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#2

I particularly like this…I have seen many illustrations of the benefits of long term investing and pound cost averaging etc before but it nice to see what happens if you get you timing completely wrong. Clearly a very long timeframe to bring it back but still…

(Jim) #3

The ‘crash’ at the end of last year already seems a long time ago.

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#4

I second that. You have to ride out the turbulent times & not panic.

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(Alex) #5

This is a similar article of his re. Retiring at a stock market peak:

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#6

Think the evidence is pretty clear on this one - it’s all about ‘time in market’ not ‘timing the market’

Another similar illustration

https://www.personalcapital.com/blog/investing-markets/market-timing-vs-time-in-market/

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#7

I think that is the problem with so many beginners in investing, they try to time the market when in-fact they should be spending time in the market & staying patient.

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