Inspiration Education Migration - IEM - Online English Course

Successful Investing is 30% Strategy and 70% Psychology

As the stock market goes through this bear market phase of declining prices, it is not surprising to see newbie investors get worried about their portfolios declining in value.

If you have invested in stocks of fundamentally sound businesses at undervalued prices, you have done a great job as an investor and should have zero worries. Over time, they will always rise in value and prices will keep making new highs in time.

In the short-term, you have zero control over the ups and downs of the market (driven by emotions, manipulation, news, algos etc..), so there is no point trying worrying about it. The only thing you should is to either ignore it OR take advantage of it (consistently adding more shares at discounts).

No matter how great an investor you are, you will go through drawdowns in your portfolio. It is part of the game! I read how some investors are already worried when their portfolio is down 20% or 30% for a few months.

Even the best investors in the world go through short term drawdowns. The best money manager in history, Peter Lynch who averaged 29% annually and beat the S&P 500 by triple saw his Magellan fund go through much bigger drawdowns during corrections than the S&P 500 itself

His Magellan fund went through drawdowns of -56% , -27.5%, -42%, -32%. Every time the S&P 500 fell, his fund would fall much more, staying down 1-1.5 years at times… but the reward for holding on and having conviction in good businesses ? Beating the S&P 500 over the long run by 3X and turning $20m to $14 billion in 13 years

"Every day" and "everyday" are two terms that are often confused in English. Review the difference with the examples shown here.

What is something that you do every day? Do you have an everyday item that you can't live without? Tell us in the comments!

What are the ingredients of the good life? How do we maximize our well-being?

Psychologist Martin Seligman studied hundreds of people who are thriving to develop a model of well-being that states that there are 5 key ingredients to what we generally call “happiness:”

😀Positive emotions
🧗‍♂️Engagement (sustained interest or involvement in an activity)
👥Relationships
🤔Meaning
🏆Accomplishments

Of these five elements, which one do you have the most of? Which one would you like to improve? Tell us in the comments or, if you prefer, share your thoughts about this with a friend!

"Karaoke" is a loan word that came to English (and some other languages) from Japanese in the 1970s. Surprising fact: the first patent ever given for a karaoke machine was to Filipino inventor Roberto del Rosario, in 1975, and it remains an immensely popular activity for Filipinos and Filipino-Americans to this day. Read more about Filipino-American history in this graphic!

How about you, do you enjoy singing karaoke? What's your favorite song to sing?

Have you ever wondered about the difference between "principal" and "principle?" This graphic explains how these two have different meanings even though they are pronounced exactly the same way.

Practice using these words by answering these questions in the comments: What is your principal reason for studying English? Have you ever refused to do something that went against your principles?