TL;DR
The recipe for making money in the stock market is dead simple, and most people still fail at it, not because the method is hard but because they cannot stand how slow it is.
Someone once asked Warren Buffett: your approach is so simple, why doesn't everyone just copy it? Buffett's answer: because nobody wants to get rich slowly.
The man who wrote this blog, an engineer in Silicon Valley who has been investing in US stocks for over twenty years, treats Buffett's problem as his own.
Slow is the only real hurdle
He publishes his returns, and a reader told him the method is clever, rational, simple and easy to follow. He stays sober about it: if one reader in ten actually absorbs it, that is already a good outcome.
The hard part is not the formula, it is the patience. Most people churn through the market their whole lives and never end up rich.
One reader tried to improve on it: buy when the price drops below a moving average, sell a little when it hits the upper band. His backtest returned over three hundred percent. The author dismissed it in one line — a pattern that reliable would have been used up long ago.
Fix the head before the portfolio
So the first thing he prescribes is not what to buy but how to think. He ends with Thatcher's lines: watch your thoughts, for they become words; words become actions; actions become habits; habits become character; character becomes your destiny.
In one line: to get rich, learn to be friends with boredom.
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