Sweet Potato Blog

20210809 - 1. Introduction Distance = Time * Effort Anything we want to achieve, it needs time and effort. Effort always has compound effect, good or bad. "The Power of Now" says, it's all about attention. Attention means effort. When we stop paying attention, we actually suspended our mind, and let the time flow away. That's a bad habit to most of people. I need some good habit to replace it. Darren Hardy said that himself was the living proof of the Compound Effect. This is obvious survival bias. Al achievers believe something, doesn't mean that something is true to all the others. Gene takes huge effect, not just the Compound Effect. Many people get used to the habit that they reject to learn. 20210810 - 2. The Compound Effect in action Why people don't pay enough attention to Compound Effect? Because it's hard to notice it in the first 90% of time. Put $1000 into SP500 Index Fund every year (10% growth per year). For the first 25 years, it's only $...

20210728 - Introduction to the 10th Anniversary Edition xv As a whole, any activity such as buy or sell stock doesn't bring in benefit to our portfolio. On the contrary, we lose money because we need to pay trading fee. All financial advisors just pretend to do something, so they can charge us fees. So, the whole Wall Street are bringing negative effect to economy through trading stocks. The profit from stock market actually means the growth of economy. If we don't need to pay the relative trading fees, then we can take the fair share of it. 20210728 - Chapter 1 A Parable 1 As a whole, "helpers" only reduce the total return. Short term trading is like gambling. The market is so complicated, that no one really know it all the time. Sooner or later, their performance will follow the average return of market. But, because they charge fees for management and trading, the investors get less than the average return of market. Around 10% to 30% less. Trading will also cause ...