Articles - Page 67 of 172

Career Advice, Decision Making, Freedom, Life Lessons

Preparation: The Antidote to Fear of Failure

July 28, 2022 No Comments

Some people are apparently more afraid of starting their own business than jumping out of a plane. That’s how powerful the fear of failure can be.

We’d rather do something that could get us killed than do something new. Researchers found that about a third of Americans are more afraid of starting their own company than sky diving.¹

Even if many of them hate their jobs and want to quit. Why are we so afraid of doing something new?

Moving to a different city, state, or country
Going to activities by ourselves
Starting a business
Switching careers

I can go on like that for a while, but you get the point. Doing something new or different that you’re doing right now is scary. You have to step out of your existing (and often safe) routines.

You have to step into uncertainty. You don’t know what will happen when you start something new. Maybe you’ll fail! And that fear of failure is scary.

But we all know we can’t let that feeling stop us. Here’s a strategy for conquering your fear.

Decision Making, Life Lessons, Mindfulness, Personal Development

Think Differently by Inverting Your Questions

July 25, 2022 No Comments

Whenever I wanted to take a dietary supplement, I would often search for something like, “benefits of X.”

X could be anything: From vitamin c to ashwagandha (a herb that’s been popular in recent years). I would also use that same line of thinking for other things I was interested in trying. For example, what are the benefits of…

a vegan diet
running every day
waking up early
trading stocks

This is the most common mental model when it comes to researching something. We tend to look at the positives.

But what happens when you only look at the positives? You risk overlooking the negatives, which could be very costly.

From studying the mental models and thinking methods of Warren Buffett and Charlie Munger, I learned that it’s important to invert your questions. You must force yourself to look at the negatives as well. So you can avoid them.

Investing, Mindfulness, Personal Finance

”This Time it’s Different” and 2 Other Investing Fallacies

July 25, 2022 No Comments

When investors deal with an unusual event, they often say, ”This time it’s different.”

It often happens during the formation of bubbles. For example, in 2021, several investors and commentators said we were in a bubble for growth stocks and SPACs.

Some said it was very similar to the Dotcom crash of 2000. But many investors said, “No, it’s not like that. Back then, companies didn’t have any earnings at all. This time, the companies have good revenues. Sure, the prices might be high, but we’re certainly not in a bubble.”

We were. And it slowly started to burst from mid-2021. One thing to remember is that not all bubbles come to a grinding halt.

Investing, Personal Finance, Wealth Building

8 Reasons Why the 1929 Stock Market Crash Won’t Happen Again

July 18, 2022 No Comments

Every time the economy goes on a downward spiral, many people refer to the 1929 stock market crash, which is considered to be the worst economic event in modern history.

It’s often used as an example of how bad things could get. After the stock market crash, the US and European economies went into depression. Up to 25% of the US population was out of a job.

The stock market was also obliterated. At a peak of 381 points on September 3, 1929, the Dow Jones Industrial Average crashed to 198 in less than 2 months. It would take another 20 years before the Dow would surpass the 200-point level.¹

But will we experience something so draconian again?

That’s something experts like to predict. Headlines like, “Why The 1929 Stock Market Crash Could Happen Again” are always popular during a stock market crash.

As an investor and student of financial history, my answer is this: No, we will not see another 1930s-style crash and depression.

Here are 8 reasons why. At the end of this article, I’m confident you will agree with me.

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