The stock market works because we humans – and particularly, we Americans, with our market-based capitalistic economy – push for newer, better, and faster ways to do things.

The two biggest building blocks for any investment portfolio tend to be stocks and bonds. Both are vital. And I want to convince you that both should be in your portfolio.

Timing is everything when it comes to stocks, but the odds are heavily stacked against anyone who tries timing the stock market.

“Predictions are hard…especially about the future.”

Over several decades of talking to investors, watching them, and advising them, I’ve decided there are four investor types.

Investing in the stock market isn’t for the faint of heart. Stock investors periodically get blindsided by events that wreak havoc on their portfolios. There are things that come out of nowhere that collapse prices.

Wealth is all about planning for the years ahead, not today.

Yes, stocks will make you more money over time, but there is a place for bonds in your portfolio.

Anyone peering in on our financial lives would likely step back, scratching their head in confusion about the weird juxtapositions we personally think are normal.

But I must admit the stock market is my favorite asset class of them all. There are three reasons underpinning that preference.

My profession has nothing to do with farming, but there are so many parallels between what I do and what farmers face each and every day. The lessons of the farm apply beautifully to investing.

Since the dawn of stock markets, investors have been searching desperately for a system that could reliably tell them when to buy and when to sell. No such system exists.

The stock market just got a lot more interesting lately.

Control is not for everyone. But if you insist on going all-in on an investment, you would be foolish to go without it.

If you can accurately forecast earnings, you have the potential to make a lot of money. Unfortunately, it’s not an easy job.

But you don’t have to accumulate billions to be considered financially successful. Buffett’s wealth shouldn’t be your barometer for success.

Diversification works – and it still matters.

Despite being easy to get into, investing is a hard pursuit to do well over time if you only invest in individual companies.

If the worst case hits us, no asset will be immune – stocks, farmland, commercial real estate, you name it.

Knowledge is power. That’s not a novel thought of mine. It’s a well-worn saying. But the reason knowledge is power is because of confidence.