Page 158 - Psychology of Money - Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)

was worth paying. Few felt the $100 was a punishment or a fine. The
worthwhile tradeoff of fees is obvious when it’s clear you’re paying one.
COBACOBA

Same with investing, where volatility is almost always a fee, not a fine.

Market returns are never free and never will be. They demand you pay a
price, like any other product. You’re not forced to pay this fee, just like

you’re not forced to go to Disneyland. You can go to the local county fair
where tickets might be $10, or stay home for free. You might still have a
good time. But you’ll usually get what you pay for. Same with markets. The
volatility/uncertainty fee—the price of returns—is the cost of admission to
get returns greater than low-fee parks like cash and bonds.

The trick is convincing yourself that the market’s fee is worth it. That’s the
only way to properly deal with volatility and uncertainty—not just putting
up with it, but realizing that it’s an admission fee worth paying.

There’s no guarantee that it will be. Sometimes it rains at Disneyland.

But if you view the admission fee as a fine, you’ll never enjoy the magic.

Find the price, then pay it.