I find that investing in our own evolution and "quality of mind" becomes paramount as we grow in wealth and ability. We are the foundation of our portfolios, after all. We decide what and when to buy or sell, so it makes sense to guard and grow our minds, our decision-making machines, with absolute care.
So much of this has to do with what we choose *not* to do more than what we choose to do. The biggest way I can see this compounding over time is in providing conviction at the crucial moments: when a stock on our watchlist hits all-time-lows. Everyone else might be screaming "sell!" but the work we've carved out allows us to see deeper than most into why they're all wrong.
Good example: $META decline starting in Sept '21 and continuing almost until 2023. META bottomed at 90 dollars, a level not seen since 2015. Now it's over 500.
The hardest work is being able and willing to ask ourselves "Is everyone else wrong or am I stupid or crazy?" If you're smart, saying to yourself "there's a good possibility I'm right and everyone is wrong" should scare the fuck out of you. It means a greatly increased *probability* of a crucial blind spot.
Love where this is going. Quality > quantity in all things.
This is a great point. The example of META is a good one. It took me way to long to understand that the market is giving you probabilities of outperformance and that shifts over time with different prices and data points.
Great post Dean. Although I’m not full time investor , I do own my own business and dedicate time between business and investing and it’s starting to intertwine but being a workaholic also though me that you have to do what you like and (time to time do things that you do not enjoy) but as @Michael Walsh said “Quality over Quantity” I want to be at this for a long time and realized that sometimes I’m “slacking at investing” but that’s because I give not priority to either other work or family and I have to be okay with that (although I’m not always am)
You gotta do you, what’s making you happy but not too comfortable so you always “bit by bit” push yourself to be a bit better
In my case, I am a bit more than 1 year doing the "Part-Time Investor". My week comprises 3 days at a "normal job", 4 days full time investing. And even my "normal job" is not quite demanding, so I am doing also investing stuff in the 3 days of work.
But with the increase in free time I also observed the same stuff than you. Focus in things that do not matter or are not productive for my investment process, simply for the sake of doing "investing work". More macro videos, looking at companies that I would not invest and I should discard in 1 minute...definitely more "short-term" looking stuff. Worthless for the portfolio.
The hobbies and doing stuff you like is what I find better to keep sanity. At the end, monitoring and managing a portfolio for the long-term should not take you all the time in the world. For example, I barely read investing books anymore, I really prefer fiction books. Or music listening instead of podcasting. Some physical stuff: gym, cooking, simply walking...
BTW: I really like this point :D :
"I even sold my house and opted to rent as a way to reduce time on the day to day upkeep and maintenance of being a homeowner. "
Thanks for the comment. I too haven't read an investment book in a long time. I like some business books but really enjoy things on psychology these days.
Great post.
I find that investing in our own evolution and "quality of mind" becomes paramount as we grow in wealth and ability. We are the foundation of our portfolios, after all. We decide what and when to buy or sell, so it makes sense to guard and grow our minds, our decision-making machines, with absolute care.
So much of this has to do with what we choose *not* to do more than what we choose to do. The biggest way I can see this compounding over time is in providing conviction at the crucial moments: when a stock on our watchlist hits all-time-lows. Everyone else might be screaming "sell!" but the work we've carved out allows us to see deeper than most into why they're all wrong.
Good example: $META decline starting in Sept '21 and continuing almost until 2023. META bottomed at 90 dollars, a level not seen since 2015. Now it's over 500.
The hardest work is being able and willing to ask ourselves "Is everyone else wrong or am I stupid or crazy?" If you're smart, saying to yourself "there's a good possibility I'm right and everyone is wrong" should scare the fuck out of you. It means a greatly increased *probability* of a crucial blind spot.
Love where this is going. Quality > quantity in all things.
This is a great point. The example of META is a good one. It took me way to long to understand that the market is giving you probabilities of outperformance and that shifts over time with different prices and data points.
Thanks for the comment.
Great post Dean. Although I’m not full time investor , I do own my own business and dedicate time between business and investing and it’s starting to intertwine but being a workaholic also though me that you have to do what you like and (time to time do things that you do not enjoy) but as @Michael Walsh said “Quality over Quantity” I want to be at this for a long time and realized that sometimes I’m “slacking at investing” but that’s because I give not priority to either other work or family and I have to be okay with that (although I’m not always am)
You gotta do you, what’s making you happy but not too comfortable so you always “bit by bit” push yourself to be a bit better
Thanks for the comment. I completely agree. You gotta do you.
Very good one, thanks for the writing.
In my case, I am a bit more than 1 year doing the "Part-Time Investor". My week comprises 3 days at a "normal job", 4 days full time investing. And even my "normal job" is not quite demanding, so I am doing also investing stuff in the 3 days of work.
But with the increase in free time I also observed the same stuff than you. Focus in things that do not matter or are not productive for my investment process, simply for the sake of doing "investing work". More macro videos, looking at companies that I would not invest and I should discard in 1 minute...definitely more "short-term" looking stuff. Worthless for the portfolio.
The hobbies and doing stuff you like is what I find better to keep sanity. At the end, monitoring and managing a portfolio for the long-term should not take you all the time in the world. For example, I barely read investing books anymore, I really prefer fiction books. Or music listening instead of podcasting. Some physical stuff: gym, cooking, simply walking...
BTW: I really like this point :D :
"I even sold my house and opted to rent as a way to reduce time on the day to day upkeep and maintenance of being a homeowner. "
Thanks for the comment. I too haven't read an investment book in a long time. I like some business books but really enjoy things on psychology these days.
Have a good one.