What are your thoughts on this article?

[Brett Mason]

What are your thoughts about this article from Adam Fayed?

WHAT ARE SOME QUICK ADVICE YOU CAN GIVE TO AN AMATEUR INVESTOR!

1. Compounding is key

Warren Buffett has `only` made 15% over 75 years! `Only` about 4.5% above the market rate.

2. 98% of professional investors beat the market

For DIY investors with limited knowledge it is close to 0%

Problem is, 20% beat the market over 5 years

30%-40% can beat the market over a year or two

This gives people overconfidence

If it were so easy to beat the market year in year out, why aren't there loads of Buffett’s out there?

3. Human nature is the killer

Human nature can be greedy, impatient, egotistical and fearful

If I called somebody `averagely intelligent`, for example, it would be considered an insult

It is normal to think you are smarter than others, and can time markets, and can use `research` to beat the market even though it is all publicly available information

4. Real estate doesn't beat markets

The costs are high of upkeep, insurance and so on

You can only do well relative to markets if you use leverage (as the below example shows) and that is dangerous

5. It isn't easy to beat markets with business as this man shows

As this man should know

6. Spending habits are key

These two people made millions but you have probably never heard of them

7. Be careful with withdrawals

In retirement you can take out 4% of your money assuming you have asset allocation and that is safe

Likewise, if you lose your job, you can do the same

8. Don’t listen to the TV gurus

The record isn't great

9. Read the evidence

Few people do

10. Don’t let your culture influence your investing habits

Linked to emotions as well, wanting to feel safe

One of the biggest reasons for underperformance

A graph of gold demand by country