From Yahoo Finance: 2025-03-23 10:30:00

Barry Ritholtz, co-founder of Ritholtz Wealth Management, shares insights in his book, “How Not to Invest.” He emphasizes avoiding mistakes over seeking wins as a key investing strategy. Simple beats complex historically, with Vanguard and Blackstone’s core indexing attracting funds due to simplicity and effectiveness.

Investors often interfere with compounding, hindering long-term wealth growth. Active trading leads to more mistakes, while belief in myths like “markets hate uncertainty” persists. Overconfidence in beating professionals is common, but most trades are done by institutions with advanced tools, making it challenging to outperform.

Being selective in media consumption is crucial. Ritholtz recommends curating sources like Morgan Housel, Jason Zweig, and Sam Ro for valuable insights. Index funds offer diversification and long-term growth, outperforming active fund managers in the majority of cases.

The digital age provides unprecedented access to investing tools and information, making it a golden age for investors. However, constant portfolio monitoring can be detrimental. Having a financial plan and working with an adviser can reduce stress and prevent impulsive decisions. A tailored plan aligned with goals increases the likelihood of financial success.



Read more at Yahoo Finance: Barry Ritholtz explains how not to make stupid investing mistakes