Earlier quoted context omitted.
Why is that?
Nobody gets rich from diversification. Its just what they tell uneducated people so that they dont take on huge risk
So it's better to stick with it and focus your energy on one thing?
Ask HN: What is the best financial advice someone has ever given you?
21–30 of 62 posts
Re: Ask HN: What is the best financial advice someone has ever given you?
#22That land is more valuable than money. Reminded of this while watching Lakota Nation vs United States. The Oceti Sakowin refuse the just-compensation settlement claim for the Black Hills; a people can live many generations on the land, while money is an intermediary and too easily lost.
That doesn't strike me as financial advice; land is only more valuable than money if you care about a particular piece of land because of ties with it. Otherwise if you have money you can buy a piece of land. Having land takes effort, having money doesn't. You might enjoy the effort of course
Re: Ask HN: What is the best financial advice someone has ever given you?
#23That land is more valuable than money. Reminded of this while watching Lakota Nation vs United States. The Oceti Sakowin refuse the just-compensation settlement claim for the Black Hills; a people can live many generations on the land, while money is an intermediary and too easily lost.
That doesn't strike me as financial advice; land is only more valuable than money if you care about a particular piece of land because of ties with it. Otherwise if you have money you can buy a piece of land. Having land takes effort, having money doesn't. You might enjoy the effort of course
I think it's more along the lines of a bird in the hand.
Re: Ask HN: What is the best financial advice someone has ever given you?
#24A few of them
1. Health is best wealth.
2. Don't forget about the high risk when chasing high rewards.
3. If it's too good to be true, it's probably isn't good at all.
Re: Ask HN: What is the best financial advice someone has ever given you?
#25A few of them 1. Health is best wealth. 2. Don't forget about the high risk when chasing high rewards. 3. If it's too good to be true, it's probably isn't good at all.
I lost a ton of money by not having the third one in mind. (mostly crypto)
Re: Ask HN: What is the best financial advice someone has ever given you?
#26That land is more valuable than money. Reminded of this while watching Lakota Nation vs United States. The Oceti Sakowin refuse the just-compensation settlement claim for the Black Hills; a people can live many generations on the land, while money is an intermediary and too easily lost.
That doesn't strike me as financial advice; land is only more valuable than money if you care about a particular piece of land because of ties with it. Otherwise if you have money you can buy a piece of land. Having land takes effort, having money doesn't. You might enjoy the effort of course
See threads on "The Rate of Return on Everything, 1870–2015." Control-F "land."
We often make the mistake of equating money with wealth. Money is simply the currency needed to exchange for goods, services, or assets (which can include securities, commodities, real estate, amongst others), while wealth is control of something of both current and potentially future value to people who will pay for it (see assets previously enumerated, although the list is in no way exhaustive).
For example: Would you rather I give you $100? Or a share of SPY? If you intend to spend, probably the fiat. If you intend to hold for future wealth, more likely the security. And if you intend to be financially secure, you are very likely of the mindset of accumulating assets that will appreciate in value at favorable prices.
https://academic.oup.com/qje/article/134/3/1225/5435538?logi... | https://doi.org/10.1093/qje/qjz012
https://news.ycombinator.com/item?id=40650326 - June 2024 (148 comments)
https://news.ycombinator.com/item?id=19817584 - May 2019 (260 comments)
https://news.ycombinator.com/item?id=16078059 - January 2018 (151 comments)
(additional threads exist, but without comment, therefore not cited)
Re: Ask HN: What is the best financial advice someone has ever given you?
#27Compound interest. Save early.
The trick with compound interest is to find something that beats inflation, because inflation compounds more quickly than your savings interest.
Another useful perspective is to recognize that a leaky vessel is better than no vessel at all. Savings is not just a poor performing investment vehicle. It's a security buffer which opens many choices down the road.
Imagine if early society decided there was no need to stock food for winter because there is some loss in the process...
Re: Ask HN: What is the best financial advice someone has ever given you?
#28You are either born in wealth or you make it through entrepreneurship.
Re: Ask HN: What is the best financial advice someone has ever given you?
#29The book, "The Richest Man in Babylon" has an incredibly basic rule in it. Save at least 10% of your income before you spend on anything else.
Re: Ask HN: What is the best financial advice someone has ever given you?
#30Optimize your tax deductions. Things you think might not be deductible could be depending on the reasoning. Get a tax lawyer but deduct aggressively.