Week 28: Wild Card Topic

What can you do this week?

• If you already do, don’t continue to look at your investments daily. Maybe use a monthly or quarterly interval review instead.

• Refocus your attention from how your investments are doing to instead focus on how do you get more money to your bottom line/your savings rate growth.

• That returns us to the 3 pillars of this newsletter: grow income, reduce expenses, and save more.

More Activity Doesn’t Require More Results

• Sports and business (among other pursuits) are where more effort and activity generate more results.

• Investing isn’t like that.

• The very educated and very talented in investment management work very hard yet the majority of them, a majority of the time, can’t beat the unmanaged assets that index funds & ETFs are made of.

  

  Picking Winners Is Hard

• The few super successful individual investments that make up the majority of returns over the years essentially carry the average of hundred or thousands of companies.

• Think of companies lately like Nvidia, before that think Tesla, Amazon, Dell, Apple, etc. as huge successes.

• Predicting those big successes ahead of time is very improbable.

• Most individuals are better served to buy a broad portfolio of indexes and sit on it.

  

To learn more about my services, checkout my website and schedule a call.

Why Inactivity Is Powerful

• Trading too often creates friction. Making your own headwinds essentially. Some but not all include:

  • Realized gains- you do control these

  • Capital gain fund distributions- you don’t control these

  • Decision fatigue

  • FOMO

  • Regret

  • Anxiety

    

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Staying Invested Is Critical

• ”If an investor were to simply miss the 10 best days in the market, they would have shed over 50% of their end portfolio value”.Visual Capitalist

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