It’s amazing how much time is spent arguing about which investment strategies or styles are better in the investing universe. Like many of you, I’ve heard the long debates about value investing being better than growth, or small-caps being higher risk and therefore not better than large caps. Even long-only strategies are considered the only ones that work and short-term trading doesn’t. Active investing has been mocked by the notion that even monkeys can throw a dart and pick better stocks.

However, in my own investing journey, I have found that all of this is a false dichotomy. Many winning strategies are used, and for those who are disciplined and consistent in their process, they make money.

While it is true that a lot of short-term traders don’t make money, some do. Not all value investors make money either, only a select few do. I’ve met many investors who have severe confirmation bias about their own styles and argue and defame and belittle anyone who doesn’t agree with their stance. However, dig a little deeper and those same investors would have been better off in an index over the same duration, as the only thing that truly matters in this game is the CAGR you rack up and how you hedge against risks over long time horizons.

For me, I gravitate to certain ideologies that make sense, but I certainly don’t dig in my feet. I know when it’s time to adapt to changing conditions. Adaptability is the name of the game. Adapting to various market conditions, changing with the tide, all the while sticking to the fundamentals and a sound investment process.

Any style or strategy that is adhered to consistently with discipline and patience will produce outstanding results.

The story behind understanding more investing strategies…

✈️ My family and I were travelling Asia for 6 months. We visited 6 cities in 4 different countries. Throughout my travels, I made an effort to stay well-groomed, mainly because my wife insists on it. Normally, I tend to let my hair and beard grow, which makes me look unkempt.

To maintain a tidy appearance, I made a decision to get a haircut and beard trim every 3-4 weeks. Typically, I am very loyal and attached to my routines. For over a decade, I always went to the same person for my haircut, feeling comfortable and familiar with the experience. However, while traveling, I had to make do with whatever was available.

At first, I went to inner-city barber shops and scheduled a haircut wherever I could find a nice place. The first time I tried a different barber in another country, it was an unusual experience. I was treated to a pampering session, including hair washing, head massage, and a completely different process. They used new equipment and scissors I had never seen before, and the barber had a unique approach.

The barber even offered to trim my eyebrows and beard and asked if I wanted to look “sexy.” I agreed, and he proceeded to work his magic on the brows and beard, providing a whole new grooming experience that made me curious to see the results.

After completing the haircut, I received another hair wash and then the grand reveal. To my surprise, the result was excellent, and in my opinion (which might differ from others’), I felt he achieved his mission of making me look sexy.

🧳 Onto the next destination and many more haircuts…

Over a few months, I got multiple haircuts in different countries, at various barber shops, some fancy and some from street vendors. At first, I had low expectations for some and high hopes for others. I showed each barber the photo of the first haircut I had, which I liked, to give them a starting point. Each one of them was able to shape my hair just like the photo.

They used different tools like clippers at different stages, some cut wet hair, and some cut dry hair. Some preferred freehand cutting, while others used only clippers. Some made me very nervous, while others appeared more confident.

Each haircut was a new experience with a new process, and all the outcomes were great haircuts. No barber or hairstylist deviated from the photo. Plus, their unique signature and style made each haircut even better than the last.

My wife finds it funny that I always go in nervous about how it’s going to turn out, but every time I come out, I am satisfied and happy with the result.

The last cut was the very best…

I left Vietnam looking a little scruffy after a hectic few weeks. We stopped in Kuala Lumpur for a few days before catching a flight to India. Wanting to look fresh upon arrival, I decided to get a last-minute haircut at a local hairdresser.

Although the salon was busy, I found a younger stylist who was available. One thing I’ve noticed in Asia is that the hairstylists and barbers all have fantastic cuts and styles, but this guy didn’t. His own hair was long and messy, and he didn’t look like a typical stylist (I hope he never reads this, my apologies to him if he does).

I decided it was fine and sat down for the haircut. The process started as usual with the seat adjustment, pre-wash, apron, and so on. The stylist then began putting clips in my hair, taking quite a long time to do so. He put on a utility belt with numerous scissors, combs, and clippers hanging off it, and then unrolled a leather satchel with multiple clippers spread across it like an assassin’s arsenal of weapons. I remember thinking, “It’s just a cut, why does he have so many tools?”

The stylist started with trimming, which was different from my previous experiences where the sides and fade are usually done first. He used new techniques and spent a long time thinning and shaping my hair. At one point, he spun my chair, so I was facing away from the window, which made me a little antsy as I had to leave soon. After what felt like ages, he spun me back around and began working on the sides, skin fades, and beard, paying attention to the tiniest details.

💇‍♂️ The final stages…

Finally, he styled the top part of my hair using various equipment at different intervals. By the time he finished washing and waxing my hair, I was quite tired from the experience. I was amazed when I looked in the mirror— it was the best haircut I’ve ever had! It’s incredible how much of a difference a good haircut can make. I walked out feeling like Brad Pitt at the Oscars in the ’90s.

Even my wife looked in amazement, saying it was the best cut I’ve had and was impressed. She said, ‘You look so young and handsome’ (I added this part in; she did not say this).

I asked him before leaving ‘You’re in your late 20s, and you’re better than most of the barbers and stylists I’ve had. What is your trick? Why is your process so different, yet the outcome is great?’

He said, “I started as a young teenager and have refined my skills over a decade already. Consistently practicing, trying new techniques, and new equipment, honing my skills, never settling on what I know or have done. Adapting to the changing styles that circulate. I stick to the fundamentals of how to cut and then add what I learn along the way.”

The connection to Investment Strategies…

This is when the eureka moment struck. This young hairstylist was right. There are many styles, investment strategies, processes, and techniques, as well as ways to make money in the markets. Those who stick to the fundamentals but continue to learn, grow, and keep an open mind, tend to get the best outcomes.

I follow a flexible approach to investing. I believe in sticking to the basics while also being open to exploring new opportunities. Every investor has their own unique process, style, and strategy. Rather than criticise others’ methods, I believe in focusing on honing my own skills and learning about different approaches, even those I may not initially believe in.

Although people often ask me what type of investor I am, trying to lock me down, my answer is not straightforward. While I prefer small-cap investments, I am open to exploring other options. I have a preference for both value and growth investments and aim for long-term holdings, but I am not opposed to seizing short-term opportunities when they arise.

I invest globally without favouring any specific region. In addition, I diversify across various asset classes, industries, and sectors. While I have my preferred criteria and approach, I am willing to adapt if market conditions change. It is not about tinkering and trying to fix what isn’t broken. It is about preparation, always preparing and improving on what I know.

Investors are like hairstylists using different tools and techniques.

Just as hairstylists should learn from one another, investors should also be open to understanding various strategies and styles. Even if technical trading or charting may not be everyone’s cup of tea, certain metrics and readings can be helpful for gauging momentum, investor sentiment, or volume.

Broaden your horizons, understand all the styles, strategies, tools available, don’t become narrow minded. Like Bruce Lee says “Absorb what is useful, discard what is useless, and add what is specifically your own.”

If your strategy is yielding the desired returns across different market and economic conditions, there may be no need to change. While my strategy has been successful, I constantly seek to expand my knowledge and understand different investment strategies to enhance my skills. Rather than seeking confirmation for my current approach, I am open to learning more and improving my investment practice.

There are many winning investment strategies…

I’ve met many successful investors with various strategies, processes, and techniques, like the barbers I encountered. The one commonality is that they mastered their style over the years. They all had disciplined rigorous systems and processes with a guiding philosophy. No matter whether it was trading, investing long-term in quality companies, or shorting poor ones. They all outperformed and made money.

There are many ways to make money in the markets. Anyone who says it’s not possible maybe hasn’t tried all the ways or failed to see results materialise.

I’ve made a lot of money trading and lost some. I also made a lot of money in value investing and lost some. I can go on and on. There have been winners and losers in all investment styles.

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Never adopt permanently any type of asset or any selection method. Try to be flexible, open-minded and skeptical.

John Templeton

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This is not to suggest or push any investment strategies or style over another, but if you want to make money in the markets, study far and wide.

I try to read, study, and practice everything to get a feel for what works and what doesn’t. I am not discouraged when other investors, no matter how successful they are, claim certain things won’t work. The markets are evolving more and more each day, and we cannot rely solely on past knowledge. We can learn from history, but adaptability will ensure survival and prosperity.

I never stop learning or trying something regardless if someone says that won’t work. I’m happy to find out. I remain skeptical about everything in the markets, always trusting but verifying everything I see, read, or come across, just like I was skeptical that a young hairstylist could give me the best haircut of my life.

🔑 The Key Takeaway…

Just as there are different strategies and techniques for getting a good haircut, there are also many ways to succeed in the market. You may think, “Mitch, cutting hair and making money in the markets are entirely different,” and of course, they are.

However, honing your skills and keeping an open mind long-term are important for success in all market conditions.

There is nothing wrong with following particular investment strategies or style. If you believe in value, growth, trading, long-term holding, concentrated diversification, or any other approach, study it as much as you can and stick with it if it works. All I am saying is to understand other ideas and strategies and not dismiss an investor’s approach because you think it’s useless and won’t work.

What I found funny is that even among hairstylists, certain ones were mocked for looking funny when cutting hair or for not using the right process. Yet, the end result was the right one.

Some investors just can’t accept that there are other ways to thrive and succeed. Instead of debating and arguing, keep refining your skills, continue to learn, grow, and become better at your craft. We are not in this game (some are) to compare; we are in this to make money and grow our capital for our own financial goals. Don’t worry about what the process looks like and how it appears to outsiders; if the end result is exceptional, then keep at it.

Every investor needs to find the right strategy and approach that suits their temperament.

💡 I’ve discovered in my own investing and business journey that sticking with something for a long period of time with discipline, consistency, and an open mind to adaptation almost always yields the right outcome.