At the end of the year and the beginning of the year, everyone will sum up the gains and losses of the year. Many investors will suffer from comparison and feel that this year “earned less than others”. Life is long, and pain always comes from comparison. When investing, we always want to suffer less losses and make more money than others. But a mountain is always higher than a mountain. If you suffer from comparison and pursuit, you are easy to fall into anxiety. In fact, investment is the same as life. If you compare too much, you will be very tired.
Half of the tiredness of life comes from comparison. Since childhood, we have been expected to live as “other people’s children”; When we grow up, we will compare the performance ranking at work and the scores of children in life in all aspects. This kind of thinking of “being afraid of being worse than others” mostly goes deep into investment along with inertia.
Just like sometimes, even if we make money from investment, compared with other people’s higher income, joy becomes distress. What’s more terrible is that some investors’ stocks or funds are high-quality enough, but because of the short-term dormancy, they were abandoned in the comparison and replaced with some varieties that rose better in a short time, but they bought at the high point. Lost in blind comparison, what is lost is not only the handling fee spent by frequent trading, but also a chicken that can lay golden eggs. Can such investment not be tired?
This blind comparison thinking will often become a catalyst for investors to catch up and kill down, so that investors can become “slaves” of the market and be “led by the nose” by the market. Looking back on history, many people are trapped in pursuit and comparison and eventually become the bubble of history.
In the early 17th century, there was a crazy tulip bulb fever in the Netherlands. Many people who did not invest in tulips at the beginning were very envious when they saw that their relatives and friends made a lot of money, and they also joined the chase. As the final outcome of all speculative frenzy, the price of tulip bulbs plummeted from February 1637. In an instant, most tulip bulbs were almost worthless, and speculators could not recover.
In the unpredictable market, there will always be different champion stocks or funds in different time periods, but no one can guarantee to win forever in his investment career. If we always invest with comparative psychology and always want to obtain higher returns than others, we will often draw water with a bamboo basket.
Always staring at the money made by others, it is easy to lose the ability of independent thinking. It’s easier for a while. It’ll be very tired for a lifetime. Investment and life are not a 100 meter race that can be achieved overnight. In a long life, it is you who decide whether you are successful or not. Investment to get rich does not depend on getting rich overnight, but on the power of compound interest.
Relax, take your time. Less investment, give yourself a chance to breathe, and increase the possibility of happiness in life. good night.
e fund investment tips: what are the expenses of American mutual funds? Is it the same as Chinese public funds?
The expenses of American mutual funds are mainly divided into two categories, and the main expense categories are basically the same as those of Chinese public funds.
One is the one-time fee directly charged to the investor when the transaction occurs, mainly including subscription fee and redemption fee.
The other kind of expenses are deducted from the fund assets according to a certain proportion, mainly including management fees, custody fees and sales service fees. Among them, the management fee accounts for the largest proportion of the fund’s operating expenses, and the management fee is paid to the fund manager as their reward for managing the portfolio.
Reference: Robert boson et al., fund business: how to manage your wealth, Citic Press Corporation(300788) press.
