That’s the takeaway from today’s Morning Brief, things you can do Sign up To receive in your inbox every morning:
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Economic data releases and earnings
There are two things that bring out the beast in me. Always will be, probably always will be.
First of all, being disrespected. And two, listening to lazy investing insights.
I can’t tell you how many times I’ve sat and listened to investing “professionals” tell me that stock market declines are healthy. ridiculous.
Since when does losing money become a big deal? Nike (NKE) led to a nearly $13 billion decline in market capitalization last week Poor quarterly EPS guidance. How healthy is this for those who are holding the stock despite five years of relative underperformance, hoping for a turnaround?
it.
Similarly, I had forgotten 20 years ago how many investing “professionals” say to ignore stock market corrections and bear markets because the stock market goes up over time.
Are you kidding me?
Sure, stock prices may be higher 10 years from now, but by then, you may be dead. Sorry to be blunt, but it’s true. What happens here and now is really important and should not be ignored.
Why? Well, because it could be financially painful, as seen in the chart below from Keith Lerner at Truist. Yes, the long-term direction of the S&P 500 (^GSPC) is higher on this chart, but it ignores all periods of major pain.
Nothing in investing always goes up in a straight line.
(truist)
last line for today
Understand that the world around you is constantly changing, and that means the drivers of the stock market are constantly changing. Don’t put your head in the sand because you heard some people say that stocks will be up 10 years from now because they always go up. If you need to focus when new information comes out about companies and the economy, you focus and keep reevaluating.
Investing your hard-earned money is just that: something you control to produce the desired outcome you want to achieve.
to that end…
I decided to take 10 minutes today and live in the moment and reflect on the many investing lessons I’ve learned over the past 23 years of my career.
The challenge I’m setting for myself this birthday weekend is to limit each lesson learned to 10 words or less without using AI. (sorry, new yahoo scout AI, I love you, and I’ll get back to you soon.) I actually have over 1,000 investing lessons, but I’m just going to leave 10 down for the purposes of timing. They are not in any order of importance.
Here we go – I hope these prove helpful in your wealth-building efforts:
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Price is the only truth in the markets.
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What the authorities say is not the gospel.
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Any bad trend doesn’t end in a quarter, if ever.
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You will never know everything about a company.
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Deeply understand what drives a company financially.
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Question everything that is positive.
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Free cash is much better than burning cash.
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Long term may never come.
Have you learned any investing lessons over the years? share them with me on x @bryansozzi. I would love to hear them!
brian sozzi Executive editor of Yahoo Finance and a member of Yahoo Finance’s editorial leadership team. Follow Sozy on X @bryansozzi, InstagramAnd Linkedin. Suggestions on stories? Email broan.sozzi@yahoofinance.com.
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