Those of you who were around in the 1980s and 1990s remember Nancy Reagan in her stylish suits telling you to “just say no.” If you, like me, were more inclined to “just say yes” as a youth, these may not be particularly fond memories.
Today, I’d like to propose a new campaign that will no doubt sweep America: “Just say ‘I don’t know.'”
It won’t keep you off drugs, but it will make you a whole lot of money.
Charlie Munger, the co-chair of Berkshire Hathaway, explains the most important concept in investing very simply: “Knowing what you don’t know is more useful than being brilliant.”
I get asked about the market all the time, and following Charlie, my usual answer is “I don’t know.”
On the surface, it seems like I should have an idea or prediction about the stock market and where it is headed. But as it turns out, that’s not even a small part of the secret of making money in stocks.
- What is the S&P 500 going to do tomorrow? I don’t know.
- Where will interest rates be in a year? I don’t know.
- Who is going to win in the midterm elections? I don’t know.
- What will Apple earn this quarter? I don’t know.
- When will emerging markets recover? I don’t know.