I liked this poll from CFA Institute asking what the most important lesson from the past 5 years was. The answers aren’t terribly surprising I guess:
59.16% – Central banks and govts will continue to bailout troubled creditors.
23.72% – Equity market structures having negative effects on market trust.
9.51% – Institutional creditors will be more prudent in lending.
3.8% – Systematically important financial institutions’ boards are working to manage risks arising from the companies’ complexity.
3.8% – Financial regulations will prevent systemic failures in the future.
Not sure I totally agree with all those, but it’s a great question. What’s the greatest investing lesson from the past 5 years? What a learning period it’s been. If you had the good fortune of surviving this period in one piece you’ve no doubt accumulated a wealth of knowledge – assuming you weren’t asleep throughout it all. What’s your greatest investing lesson of the last 5 years?
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.