This recent dollar devaluation at the same time as the S&P 500 made new highs left some investors amazed that the ETF or mutual funds in which they invested are not appreciating.
Warren Buffet says that the first rule of investing is not to lose money and Charlie Ellis, in his book "Winning the loser's game", compares the average investor to an amateur tennis player - a game that is won by avoiding mistakes rather than complex moves winners. Why is it so important not to make mistakes?
A few days ago we were exchanging messages with a potential investor. I am always happy when someone discusses a 20-30 year savings plan. However, I realised that something was missing. Such a long-term investment plan must include inflation in the calculations, something that the investor was not taking into account.