full image - Repost: The TRUTH I learnt from Warren Buffett and Charlie Munger (from Reddit.com, The TRUTH I learnt from Warren Buffett and Charlie Munger)
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1. The system is riggedThe financial industry thrives on overcomplicating things to justify fees.As Charlie Munger said:"The whole damn system is corrupt... everyone wants easy money, fast. And that requires a big fee."Think about it: there’s $2 trillion locked in mutual funds charging 2% fees while underperforming cheap index funds like the S&P 500. Who’s really winning here? Hint: it’s not us.2. Temperament beats intelligenceInvesting isn’t about being the smartest—it’s about controlling your emotions.Warren Buffett: "The most important quality is temperament, not intellect."I read a study of a fund that averaged an 18% annual return, but the average investor in that fund lost money because they tried to time the market.Lesson: Fear and greed will destroy your portfolio faster than any bad stock pick.3. The S&P 500 is your cheat codeHere’s your free investing hack: buy the S&P 500 and chill.Low fees.Decades of growth.Outperforms 98% of funds consistently.Even Charlie Munger admits:"Wealth managers have almost zero chance of beating an unmanaged index like the S&P."So why do people chase stock-picking glory? Because too many investors confuse excitement with success.4. Picking stocks is really hardThink it’s easy to find the next Tesla? It’s not. And even if you do, good luck getting in before the hype.Buffett: "If you can’t value the stock, you can’t invest in it. You can gamble on it, but you can’t invest."Most people buying stocks have never even read a balance sheet.Picking winners is possible, but it’s incredibly hard—think Charlie Munger-level hard.What this all meansThe truth is, the game is rigged for most people to lose. But that doesn’t mean you can’t win.The winners aren’t the ones chasing hype stocks or flexing their "10-baggers"—they’re the ones quietly compounding wealth by staying disciplined and focusing on what works: consistency, patience, and a solid strategy.So, how does this match up with your experience? What lessons have you learned the hard way?
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