Yogi Berra's 7 secrets to building wealth
Famed Yankee catcher's advice is worth heeding.
This post comes from partner blog The Dough Roller.
simple truths in life are the most profound. Take Warren Buffett, for
example. He can summarize all the investing advice anybody would ever
need in a single sentence: "We simply attempt to be fearful when others
are greedy and to be greedy only when others are fearful." And in case
you haven't noticed, Wall Street is fearful right now.
Buffett isn't the only smart guy around. It turns out that famed Yankee catcher Lawrence Peter "Yogi" Berra is pretty smart, too. Let's see what seven secrets he can teach us about money and investing.
"I knew I was going to take the wrong train, so I left early."
You will make mistakes when you're investing. Even Buffett has made
mistakes, including (as he acknowledges) his 1993 purchase of Dexter
Shoe. I've certainly made mistakes, including the purchase of my first
mutual fund, which came with a 5.75% front load and hefty yearly
expenses. Ouch! But just like Yogi, get on the investing train early,
and you can still reach your destination on time.
- Bing: More on Yogi Berra
"This is like déjà vu all over again."
The market goes up and down, over and over again. When the market is in
a panic and prices are falling, just remind yourself that it's déjà vu
all over again. Otherwise, you may find yourself tempted to make a
"If you don't know where you are going, you will wind up somewhere else."
Financial goals are a must. Financial goals enable you to set sound
priorities, measure your progress, and make mid-course corrections.
Measuring your progress against goals can help motivate you in times
when you feel like giving up, and those times will come.
"You better cut the pizza in four pieces because I'm not hungry enough to eat six."
You can try to beat the market by cutting it up into different slices.
Certainly some have succeeded, most notably Buffett. But for most of
us, trying to beat the market is like trying to cut the pizza into
fewer slices: We still end up with the same pizza. This is why, for
most, investing in index funds as the core of a portfolio is the
smartest way to buy the whole pizza.
"A nickel isn't worth a dime today."
Inflation is one of the most significant risks to your financial
future. Everybody seems to fear a market meltdown, when the real
long-term risk to a portfolio is the quiet, ever present, never
sleeping, inflation gremlin nibbling away at your nest egg. Long term,
stocks beat inflation; many bonds do not.
"Ninety percent of the putts that are short don't go in." And
90% of those people who don't save enough for retirement don't have
enough for retirement. Don't leave your investing putts short. If you
do, you'll never make it.
"Nobody goes there anymore; it's too crowded."
Many market participants act like lemmings, following each other over
the cliff. It's easy to say don't follow the crowd, and it's another
thing to actually heed that advice. Nobody said this was easy, but to
repeat Buffett's sage advice: "We simply attempt to be fearful when
others are greedy and to be greedy only when others are fearful." Amen.
In the words of Yogi Berra, "It ain't over till it's over." Well, it's over.
Other articles of interest at The Dough Roller:
- How to buy a refurbished iPhone
- 4 reasons to buy Berkshire instead of a mutual fund, and Buffett ain't one of them
- Would you work for Dr. Gregory House?
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