Lecture 3: Basic Investing—Keep It Simple
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investing in government bonds and the eight-and-a-half percent
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extra return investors get on average for accepting more variation
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averse because he or she needed such a high rate of return to buy
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holding a mix of investments that include a hefty share of stocks,
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poorly in some years, they tend to bounce back, making a long-
term investment in stocks less volatile than a short-term investment
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few-month period, but if you lengthen the time period, they have
KLVWRULFDOO\EHHQOHVVULVN\% There are two reasons why many less-sophisticated investors shoot
themselves in the foot when they invest in stocks, underperforming