Doing Nothing
Why inactivity is sometimes the hardest decision
This post is part of my How I Run My Portfolio series—where I break down how I actually manage my capital. You can find the full series here.
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Introduction
When I transitioned to full-time investing, one of the things I struggled with most was doing nothing. I went from being time constrained to having endless autonomy. It took me a long time to learn that sometimes the best thing to do is nothing. Not literally nothing—but no transacting. This may sound obvious, but it isn’t.
We have an innate desire to do something with every new piece of information. Every earnings report. Every macro headline. Every new post on X from someone who sounds smart. It doesn’t help that we have access to a constant stream of new ideas and seemingly infinite amount of investors looking for new companies for you to research.
A younger version of myself felt like I needed to constantly act. New information meant new decisions. Portfolio turnover felt productive. It usually wasn’t. It was costly.
My version of doing nothing can feel a bit like being a duck in a storm. On the surface, the duck looks calm—almost bored. Underneath? Its feet are paddling like crazy.
That’s often what “doing nothing” looks like in investing. From the outside, it can look lazy or passive. In reality, there is often a lot happening underneath.
Why Is Doing Nothing So Hard (For Me)
When I say “doing nothing” I mean not having something tangible to show for your time and energy.
I grew up in a blue collar house and I started my career as a tradesperson. Having something to show tangibly at the end of work was expected. My largest influence on my work ethic was my father. And dad didn’t really understand knowledge work for what it was. So I think that’s where I get the feeling that I must have something to demonstrate to others on what I did at work.
I was also taught to have a strong work ethic. Lazy is a swear word in my house. There are many things someone can call me and it not bother me, but lazy isn’t one of them.
I also felt this when I stepped into management. There were times when things where humming along and I had a desire to “do something”. I found that my attempt to improve things would sometimes lead to more work for me or simply interrupt what was already working. I did more harm than good. I should have just appreciated the peace and quiet for what it was. Whatever crisis was next would still be waiting for me at some point.
What Doing Nothing Looks Like (Outside vs Inside)
What “Doing Nothing” Looks Like From The Outside
It can look like:
laziness
inactivity
complacency
indecision
procrastination or avoidance
Your portfolio barely changes. No trading. No chasing headlines.
What’s Actually Happening Underneath
Doing nothing doesn’t mean disengaging. For me it’s:
keeping tabs on companies I own or follow closely
revisiting my thesis and expectations
researching adjacent industries or competitors
building conviction in ideas I may size into later
networking with investors and comparing perspectives
writing and refining how I think
And sometimes, I’m intentionally spending time outside the markets. Family, friends, fitness, something creative, etc.
We Confuse Activity/Busyness With Progress
I have noticed over the years that we confuse being busy with being productive. It doesn’t help that the thing many of us interact with most—our phone—is designed to keep us engaged and reacting.
Our financial institutions also make money from us moving capital around. Whether it’s through trading fees, a new ETF, something macro to be prepared for or some other type of product they can make money from. The nudge from them can get us to act without considering what we are doing.
It’s also really easy to find people on X or Substack who are crushing it because 1 month ago they rotated 80% of their portfolio to the Ethiopian Birr or some random group of companies in Turkey.
All this triggers the FOMO part of our brain to get off our ass and act. I mean don’t you want to make more money?
Personally, I’ve found that over-transacting is one of the easiest ways to hurt performance. I made a post about it a couple years ago.
When Doing Nothing Makes Sense
Like many things in investing, whether doing nothing was “right” often only becomes obvious in hindsight.
However, in the moment there are times when doing nothing is the right decision. Not every piece of information deserves action. Sometimes the news changes nothing. Sometimes it confirms something I already believed. Sometimes the thesis is still intact—even if the stock price isn’t cooperating. And sometimes I simply need more time to process the news and what it means to the position.
There are times when news is material and requires a decision. There are other times when it’s just noise. Of course, what counts as “noise” depends on the investor. Something irrelevant to me may be meaningful to someone else.
Productive vs Non-Productive “Doing Nothing”
There’s productive inactivity. As mentioned earlier, you can be busy but not really productive. Below are some examples:
Productive
letting a thesis play out
revisiting expectations
learning deliberately
spending time outside markets
Not Productive
doom scrolling
constantly checking websites for updates that aren’t material
reactive macro takes
getting into needless debates on X about politics
taking your 4th victory lap on a position
What This Looks Like In The Context of My Portfolio
Many investors have high turnover in their accounts. Many don’t.
Personally, my portfolio tends to look fairly similar for long stretches—and then change quickly in a short period of time.
a thesis breaks
a better opportunity appears
a thesis plays out and I take profits
Not much happens until a bunch of things happen.
Closing Thoughts
Doing nothing is probably one of the hardest parts of investing - at least for me. It feels uncomfortable. It feels lazy. It feels like you’re falling behind.
But in my experience, activity and progress are not the same thing.
Sometimes the best decision is patience.
How do you think about doing nothing? Do you struggle more with inactivity—or acting too quickly?
Thanks for reading my work.
Dean
If you found this useful, you can follow the full series here.
Great post - very relatable!
Like what Charlie Munger said, "Buy good stocks. And then just sit on your ass."