Why do so few succeed in the stock market and so many fail?  We interview the man who literally wrote the book on the subject, author Steve Sears.

One of our favorite quotes in from Warren Buffet, “Be fearful when others are greedy and greedy when others are fearful.”  But that takes balls and his willingness to buy fear is one of the reasons he has amassed a fortune.

We advocate long term investing and that strategy is better and more successful than jumping in and out of the market.  So why do so many people do that?  They’re driven by what they hear and read in the news and follow the “market mob.”  They hear about a fast rising stock and jump on it without doing even the most rudimentary research.  A successful investor stays away from this like the plague.  Until the stock bottoms out, that’s when they buy.

Fifty percent of your gains will come from doing nothing.  Buy stocks that pay steady dividends and make them the foundation of your portfolio. Bad investors think of ways to make money and good investors think of ways not to lose money. 

You have to learn to tune out the noise that is just information without value.  It’s not easy when we are subjected to it constantly.  I even wrote an article on it.  Focus only on what has value.

The most basic step is to pay yourself first.  At least ten percent.  Make sure some of that percentage is in non-taxable accounts like an IRA.  You have to live a little less today to live a little better tomorrow.  Empathize with your future self.  The future is not some vague, foggy thing, it’s creeping up on you every day.

Sorry guys.  Steve did not provide us with the magic bullet.  He confirms the cold hard truth.  Put your money in the market and leave it.  You are unlikely to strike it rich an an IPO or whatever the latest stock the media is shouting about.  Slow and steady to win the raise.

Show Notes

The Indomitable Investor:  Steve’s book on success and failure in the market.

Betterment:  The easy way to invest.

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