Yogi Berra, Investment Sage - Financial Planning Chapel Hill l Old Peak Financial Advisors

Yogi Berra, Investment Sage

October 10, 2015

Old Peak Finance - Yogi Berra, Investment Sage

Yogi Berra, Investment Sage

October 10, 2015

Yogi Berra, the Yankee great who recently passed away, was widely know for his Yogi-isms. As far as I know, Yogi was not an expert in personal finance or investing. But judging from some of his quips, he could have been:

“It’s deja vu all over again”. Any time the stock market dives and “experts” try to convince you we are facing a never-before-seen crisis which calls for you to sell everything now, just remember this. We have been here before. The market will eventually rebound. Keep calm.

“If you don’t know where you are going, you might wind up someplace else.” Do you have a financial plan? If not, how will you get to where you want to go?

“Better make it eight. I’m hungry.” (Yogi’s response to the waitress asking whether she should cut his pizza into six or eight slices). The next time someone recommends a lot of narrowly-focused investments instead of a smaller number of broadly-diversified funds, ask yourself why. Usually you can get all the diversification you need with a small number of broad funds — which typically cost a lot less than the narrow funds many advisers push.

“Baseball is 90% mental. The other half is physical.” Investing may be 90% mental — specifically, keeping your cool. At some stage we’ll have an even tougher period than the past quarter. No one knows when. But history provides one lesson. You will almost surely do better by ignoring the ups and downs. If you sell low, in a panic, you can easily miss the rebound.

If you remember these four truths, you can avoid being the subject of another Yogi-ism: “We made too many wrong mistakes”.

This article is not intended to provide tax, legal, accounting, financial, or professional advice. Readers should seek advice from qualified professionals who can review their specific circumstances. Old Peak Finance endeavors to provide information that is accurate and current. However, we cannot guarantee that this information has not been outdated or otherwise rendered incorrect by new research, legislation, or other changes. Old Peak Finance has no liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website.

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