This is my first real experience with a ‘crash’. Even though I thought I didn’t participate in the train wreck, I was too close to the train tracks, so I was part of the collateral damage. Here are 10 things I learned from this crash:
1) If anyone is offering you more than 12% returns per year, be very scared. S&P returns 12% returns an year average at a huge risk. Even with an investment on the S&P index, you could lose big. Compared to that benchmark, anything else is pretty much groping in the dark.
2) Take control of your personal finances. Be aware of how they are performing. Even if you pay someone else to maintain it, be watchful of what they do with it. It is your money.
3) Any investment is for long term. If you need money short term, put it in a CD or money market. You can’t really time a market, definitely not a bubble. You have to get two things right in a bubble, the entry point and the exit point. Chances are you would mess with one of the two, if not both.
4) If you want to protect your investment at all costs, set a firm low price that you can withstand. If your investment goes below that number, exit.
5) You need to do only one thing with your stock options. Sell them as you vest. You will do okay over the 4 year vesting period. Set a minimum % gain as low ceiling and sell consistently as you vest. There will always be more stock option grants in future.
6) Avoid succumbing to peer pressure.
7) Quantify wealth in your family’s terms. Wealth is not money. For your family, wealth could be traveling around the world 
. Strive towards building wealth, not money.
Reduce debt. Even if your money will serve you better if invested elsewhere, pay off debt as soon as you can, at least reduce it. There is a reason why the interest rates on debt are low. It is a fallacy to make you believe you can make higher than that elsewhere. Chances are, you won’t.
9) Listen to people wearing tin foil hats and listen to contrarian thoughts. People are much smarter than you give them credit for.
10) Lastly, buy glass [lens for non photographers]. Glass holds value 
, money doesn’t. [Substitute it with gold, silver, diamond whatever commodity turns you on].
Thats about it. Comments welcome.
