Why I come out this article?
A post I made a few days ago: “Not allow or do not want to spend time on stocks?“. After the publication, several friends were very impressed by the short paragraph of “No-brainer investment” mentioned in this article, and hoped that I could explain my views in depth.
Requirements for a no-brainer investment targets
As I said in “Not allow or do not want to spend time on stocks?” As mentioned in the article, any no-brainer investment method must meet the following two simple requirements:
Suitable for long term holding
The implied meaning of this condition is that the stock price of the purchased target will continue to rise in the long run. Investment targets suitable for long-term holding have been tested by the market for many years, and will not fluctuate greatly for no reason.
It’s their job to make money for shareholders, not yours; just let these kinds of public companies make money for you while you sleep.
Buy it and forget it
The implied meaning of this condition is that the purchased target basically does not need to be taken care of, and investors do not need to spend a lot of time on research and tracking.
Throw all investment statement post mails from your brokerage into the trash can, and set all investment statement emails from online brokerages as spam, because reading these things will only waste your precious time, makes your heart beat faster and is bad for your health.
The mentality required
Enter the market to pick up bargains when it crashes
The most difficult thing for most people to overcome is to buy high and sell low, of course they can’t make money. Nowadays, the information is advanced and the speed of transmission is extremely fast. Even if you do not pay attention to financial information, it is impossible for you not to be unaware of the once-in-a-year stock market crash. When the stock market is not crashing, just be a hibernating bear in a cave, and the stock market has nothing to do with you.
“What to do when the stock market crashes is to buy, not to sell”, because at this time no one will compete with you, and there are bargains everywhere.
Don’t expect to get rich short term
As I quoted at the end of the preface of my book “The Rules of Super Growth Stocks Investing“, Buffett told Bezos’ famous saying “Because no one wants to get rich slowly.” Most people still think that the stock market is to make quick money where the money is, I want to get rich overnight.
Whether it is an investor who expects to get rich in the short term, or an investor who believes that the stock market is a place to make quick money, it is not suitable for no-brainer investment.
Invest with spare money
In this way, even if you lose money, it will not affect your finances, let alone feel distressed, and of course it will not affect your daily life.
You’ll be thanking yourself for the decisions you made years ago, and the extra fortune you’ve amassed for yourself.
Don’t stare on your investment target
Whether you keep an eye on your investment targets from time to time, whether your hard-earned money has increased in value; these behaviors are not only not beneficial to you, but also have negative effects. Because the stock will not stop its rise or fall just because you watch or ignore it.
Ignore the experts
So turn off the TV financial news stations and ignore the Facebook or Youtube celebrities; because what they care about is not the business or its value, but their ratings and click-through rates, and they don’t know any more than you do.
Moreover, the investment performance of most of the financial professors, financial experts, investment experts, Internet celebrities, celebrities, and best-selling authors you are familiar with is disastrous, even worse than that of retail investors or market index.
Keep in mind: “Investment performance cannot be bought with money, but reputation can.”
Closing words
The investment method for no-brainer people is to ensure that you can sleep well every day, and you are willing to believe from the bottom of your heart that ordinary people can get rich slowly.
Related articles
- “No-brainer investment’s requirements and mentality“
- “Not allow or do not want to spend time on stocks?“
- “For Taiwanese stock investors investing in US stocks“
- “Why do most people fail in stocks investment? 4 simple reasons“
- “Most investors should invest ETFs tracking broader market“
- “Most investors’ problem is concept and psychology, not stock selection“
- “Do investing homework by yourself: Necessary conditions for successful investment trilogy“
- “Reading is irreplaceable and necessity of for investors“
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