Extra: Audiobook Sneak Peek—“After Yesterday”

0:00This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. Hey fools, happy weekend. David here with a quick Rule Breaker Investing weekend extra. I've got something special for you today.

0:37It's a five-minute listen-in from the Rule Breaker Investing audiobook, which arrives just days away, September 16th, alongside the hardcover and the e-book versions. Now, if you're an Audible fan or you just like hearing ideas rather than reading them, this is your sneak peek. Or listen. A quick word on what you're about to hear. This excerpt captures the spirit of my book. Practical, optimistic, maybe a little mischievous, equal parts habits, stock picking traits, and portfolio principles, all in service of making us smarter, happier, and richer. This is the start of chapter three. It's in my own voice, of course, with a few points you may recognize as a regular listener of this podcast and a story you probably haven't heard yet.

1:27If you enjoy it, you can pre-order wherever you get your books and audiobooks. And here's a pro tip. Pre-orders help signal to the world that investors still read and listen. And if someone in your life could use a friendly on-ramp to investing and send them this episode, Consider it the audio appetizer before the main course lands on September 16. All right, enough from me. Let's cue it up. Producer Bart Shannon, five minutes from the Rule Breaker Investing audiobook. I hope it entertains here on your weekend as a weekend extra. And I hope this book, this audiobook, pays for itself many times over in the years to come.

2:11All right, let's get started. Fool on. It's the Rule Breaker Investing Podcast with Motley Fool co-founder David Gardner.

2:25You still like cloud computing stocks? The host queried me during the commercial break. After yesterday? I was co-hosting the early morning CNBC market show with a smart young anchor. Our perspectives couldn't have been further apart. During the first commercial break, I'd mentioned several of my favorite stocks, like Salesforce, and her jaw dropped. The cloud computing sector had sold off 7 to 10 % the day before. You still like cloud computing stocks? After yesterday? My co-host, we shall call her, after yesterday, wasn't a day trader or a high-frequency trading supercomputer. This was a well-educated, successful broadcast journalist who got up at dawn to cover the markets.

3:13People tuned in to her to learn the day's ins and outs of business and market developments. Except maybe in a sense, she was a day trader. Anyone who follows the markets for a living and makes other people feel like rubes for still liking a stock after yesterday would seem to be day trading the headlines, trends, and buzz, even if not day trading the stock market. If you follows something minute by minute, every zigzag, pass, shot, or tackle becomes noteworthy. You magnify it. And heck, after yesterday isn't being paid for her financial advice, she's great at what she does. Anchoring live TV at any hour of the day is a demanding job.

3:59Just don't confuse her perspective with financial expertise or let it guide your money. I guess some people watching CNBC think the opposite. In most aspects of life, I'd bet after yesterday is well-mannered and exemplary. It's only with the stock market that she thinks and likely acts contrary to her and your best outcomes, ironic and kind of crazy. If you ever wonder how common capital F fools like you and me can outperform Wall Street and its indices, you now know your answer. The surest way to beat the market over time involves maintaining the same equanimity and perspective with your money that you do in other aspects of your life.

4:46Maybe Billy Joel crooned the greatest investment secret of all. Don't go changing. In other words, buy stocks to keep them, not trade them. You'll do so much better if you invest for at least three years. If your absolute minimum holding period is less than three years, you're doing it wrong. We often misunderstand what invest means and what investing looks like. The Latin root for invest is investiri, meaning to put on the clothes, wear the garments. Think of a related phrase like priestly vestments. Picture fans wearing the jerseys of their favorite teams As they walk to the stadium, find the way to their seats, cheer their team on They are sporting the home team colors And whether their team wins or loses, they keep that jersey on Whether their team has a good or bad season, they keep that jersey on Why?

5:52Because they're deeply invested Ironically, many may be more invested in their sports teams than in something of far more value, the financial investments they make Sports fans know their team is not going to win every game or year Rule Breaker investors know the same of our stocks If you find a great team, stick with it Putting on the clothes can be literal People wear shirts with an Apple logo, love their Lululemons, have Harley tattooed on their shoulder. These are not the same people. You likely have logoed garments in your wardrobe. So my wishes for you are A, that you own those stocks, and B, that those investments will outlast your clothes.

6:41Whether or not you have the shirt yet, I want you to love the companies you're invested in. My portfolio includes enterprises that I believe do good things in this world, are purpose-driven, manage for the long term, show resilience, exhibit optionality. I believe their success leads to a better world. When you're actually invested like this, it's natural, even in hard times, to keep that jersey on. If people treated financial investments like their lifelong emotional investments in their sports teams, they'd be smarter, happier, and richer.

7:42You