From Morningstar:

– The author reflects on her time at Morningstar and the concept of time in investing. She joined the company in 2021 amid highs in Hong Kong stocks, which later tumbled. She discusses the impact of recency bias and the value of compounding over time in the market. She emphasizes the importance of staying invested and not trying to time the market based on short-term trends and fluctuations. Additionally, she highlights the negative impact of high investment fees on returns and the value of low-cost funds in generating better outcomes for investors.
– The author discusses the impact of biases like loss aversion and herd mentality on market timing and the long-term financial consequences of poor investment decisions. She warns against being swayed by short-term market trends and emphasizes the importance of staying the course and enduring market cycles with discipline. She also stresses the negative impact of compounding high fees and the importance of considering costs when evaluating investment opportunities.
– The author shares insights on how to invest better, emphasizing the need for a deep understanding of investments and not losing focus on the context that underpins investment decisions. She discusses the challenges posed by higher-yielding time deposits for the fund business and the need for investors to carefully assess the trade-offs associated with short-dated instruments amid fluctuations in yields and the potential decline in the value of money.
– The author reiterates the value of compounding and the need to consider factors beyond just the value of assets in investment decisions. She emphasizes the importance of having a well-defined investment strategy, patience, and diversification. She also expresses gratitude to readers for their support and engagement with Morningstar’s content, as she bids farewell to her role at the company.



Read more: The Importance of Time, and Other Lessons I’ve…