Income v. Capital Appreciation

There are 3 downfalls with behavioural investing:

1. Human nature intuitively believes the essential issue is safeguarding principal; in fact, it is the challenge of maintaining an income that rises to offset increasing living costs that is the biggest risk to most of us except the ultra wealthy.
2. Income that rises at a premium to inflation over decades-long retirement is historically available, among financial assets, only from equities (that is being an owner of great companies)
3. In its obsession with principal, human nature will regard even the most quotidian downturns in equity values as existential crises, and will seek to flee them, dooming a dignified, independent retirement. 

That is all.