NOTES:
-Index funds are the safest bet over time because they tens to track the market and the market index funds that include a composition that reflects the ups and downs of the market are safest because markets in the very long term will rise
-Do not attempt to beat the market you will lose as much as you make over time, even the best educated people in the world cannot often beat the performance of an index fund which is consistent
-Longterm investing means longterm, you do not react to ups and downs
-RISK means what it means to you, if you have a risky career in terms of how certain your earning potential is - do not play riskier games in the market, play it safe
-Page 350 - How to diversify a portfolio
-100 a month lead to over 100k in 30 years - rigorous saving in your early life through your later life is the only way to wealth in later life
-Page 362 - Who you are and what you can earn outside of your porfolio determines risk you take - people who cannot have much income available/saved outside of their porfolio should be carefully having risky stocks of small growth companies in her portfolio
-Never take on the same risks in your portfolio that attach your main source of income - example Enron employees had 100k in none diversified holdings in Enron stocks only BAM lost job and 100k retirment money when Enron went under