How to Make Money in the Stock Market: Stay Invested

In this clip, Dave and Jason Pereira talk about how sometimes, the best investors are the ones who forget they even have an account.

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What’s the old saying about how to make money? It’s buy low, sell high. Well, you, we, you and I both know human behaviour wants to do the opposite, right?

I think we’re all wired that way. I mean, we really are. I remember back in March of, uh, 2009, literally the bottom of the downturn with the credit crisis, so many friends were saying, I gotta sell it all. The pain was so extreme, they wanted to stop the bleeding, get out literally at the bottom of the market.

And it’s one of the reasons why I think people shouldn’t pay much attention to the markets. If you’re in there for the long term, then be in there for the long term. Don’t watch, I talk all the time with the podcast about my father. He’s oblivious. He pays no attention to any of this, and that’s served him very well.

You don’t get emotionally engaged and make bad decisions when you don’t know what’s going on. So yeah, he’s clueless.

It’s the myth of the old, the old myth of the, uh, fidelity study that never actually happened where Fidelity, yeah. So everybody says this thing exists, but no one’s ever seen it. Um, but it was the, the myth says that, uh, they did a study on the advisors who, investors who did the best. And it was those who either lost their password, forgot they had money there or died because they never bothered logging in.

Just let, let it ride.

But you know, the funny thing is had they done that study, I think it would’ve turned out that way. So if for real, I actually think it would’ve turned out that way.

We keep talking about it because it resonates. ’cause we have seen the opposite and we believe inherently that it’s true. And I, I agree with you. I wouldn’t be surprised if it was true. I wouldn’t be surprised if it existed and they buried it, but no one’s ever seen it.