Note to young investors: Nobody has all the answers
The goal of money managers is to buy things that they expect will become more valuable in the future, for example, buildings, precious metals and company shares. In other words, they want to buy something cheap so they can sell it at a higher price in the future. The challenge is that you can’t never be 100 percent sure about what’s going to increase in value. The risk of losing money is never zero percent.
Sir John Templeton (1912-2008) was crazy good at buying assets that then increased in value. One of his secrets was to study a lot about the world and current events. He liked to stay flexible, open-minded and skeptical about new and old information. His view was that there’s always something you don’t know about. As he explained: “An investor who has all the answers does not understand the question.”
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