A book recommended by @Iamsamirarora at @TIA_Investors Triumph of the Optimists: 101 Years of Global Investment. Short summary- The authors (Dimson, Marsh, Staunton) study more than a century (1900–2000) of market returns across 16 countries and all major asset classes (stocks, bonds, bills, inflation, currencies) to learn what history says about investing. Main conclusion: Over the long run, people who took the risk of investing in equities generally did better than those who put money into safer assets. In almost every country studied, stocks outperformed bonds. Risk versus reward: Stocks were more volatile (riskier) than bonds or bills, but that extra risk usually came with higher returns. However, the extra return for taking stock risk (the equity premium) is probably smaller than some earlier studies claimed because past research often missed failures and biased samples. Diversify globally: Investors would generally have done better by investing internationally rather than just in their home market. Despite this, most people still prefer domestic stocks, the authors call this the “home bias puzzle.” Factor results: Known patterns, like value stocks beating growth, and a small-cap premium appear in the data, but some anomalies disappear after they become widely known. Watch expectations: High historical equity returns aren’t guaranteed to continue. People often overestimate future returns by relying on recent or U.S.-centric history. Practical takeaway: Think long-term, keep a global perspective, expect volatility, and temper return expectations. Patient, well-informed investors who accept risk and diversify are most likely to triumph