Someone is sitting in the shade today because someone planted a tree a long time ago. –Warren Buffett
Why settle for good results in your investments when you could get excellent results? No matter how you’re managing your financial life today — or your life in general — you can probably do better if you make certain long-term investments. Here are three such investments you’ll thank yourself for later.
1. Invest in your brain
The best way to become a better investor is to become a savvier investor. The more you know, the smarter investing decisions you’ll likely make. Here are some great ways to get smarter about the stock market:
- Read good books on investing, such as John Bogle’s The Little Book of Common Sense Investing, Peter Lynch’s One Up on Wall Street, Joel Greenblatt’s The Little Book That Still Beats the Market, and The Motley Fool Investment Guide by David and Tom Gardner.
- Read good books on money and psychology, such as The Psychology of Money by Morgan Housel, Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely, and Nudge by Richard H. Thaler and Cass R. Sunstein.
- Read about great investors and how they think, in books such as Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life by William Green, The Most Important Thing: Uncommon Sense for the Thoughtful Investor by Howard Marks, and The Essays of Warren Buffett: Lessons for Corporate America by Lawrence Cunningham.
- Read articles at Fool.com, where you can find scores of them every day covering companies of interest along with many investing and personal finance topics.
- Learn how to make sense of financial statements such as the balance sheet, income statement, and statement of cash flows. Doing so will help you better understand how a company is really doing. If you want to get really good at it, consider taking a course in accounting, and if you want a deep education in security analysis, pursue a Chartered Financial Analyst (CFA) designation. (That could even lead to a new career!)
While you’re learning, be sure to take note of common investing mistakes, so that you can avoid making them.
2. Invest in your health
Investing in your health may not seem like a way to get financially stronger, but your health and your wealth are related. For one thing, poor health can be very costly, potentially presenting you with hefty bills from doctors, hospitals, and pharmacies. It can cost you years of your life, too.
To aim to keep your …….