The worst-kept secret that the rich know is readily available for all of us to learn. The rich understand that their money is capital, and it can be used to invest and grow. When they invest their money, business uses that to invent new products and services that people find valuable enough to spend their money on. This increases productivity of the population as a whole. And they get a return on their investment.
When people spend their capital, they not only no longer have the money, but they also lose all the return on that money too.
The one question I keep asking myself when I invest in a company is: If I could only sell this company 3 years from now, do I still want to invest in it? Thinking longer-term leads to much better results.
And when a stock price tanks, re-evaluation of the company is needed, because it could be a failing company…but many times, it can be a screaming bargain, which means you should buy more!
This is what happens when emotions come into money decisions
Read Full Story: The money mistakes even the super rich make – MarketWatch