“You don’t need to be smarter than others to outperform them if you can out-position them.” That’s the key message behind Clear Thinking, a new book by Shane Parrish. And it’s a philosophy Shane applies to almost every aspect of his life, from diet to exercise to investing.
Shane’s mentors are Charlie Munger and Warren Buffett, and he strictly follows Buffett’s advice to invest regularly in index funds and resist the temptation to bail out when market volatility strikes.
As ROBIN POWELL explains in his latest article for Timeline, you too can outperform the great majority of investors by following a simple rules.
Of all the valuable life lessons the late Charlie Munger taught us, the one that stands out for me is the importance of learning from others.
“I believe in the discipline of mastering the best that other people have ever figured out,” Munger said. “I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.”
Someone who definitely shares this view is Shane Parrish. Shane edits a hugely successful blog called Farnam Street and is the author of a best-selling book entitled Clear Thinking. He wrote Clear Thinking, he says, to give people the tools to master their own fate, sharpen their decision-making, and position themselves for success.
Parrish is a longstanding advocate of regularly investing in low-cost index funds. Although this isn’t a book about investing specifically, the lessons it teaches are very relevant to investors. So let’s look at four of those lessons and the key takeaways for those who want to improve their investment outcomes.
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