Being a full-time private investor is no easy feat, and one of the hardest parts is being consistent like clockwork. Many people envision private investing as glamorous, but there are numerous challenges that come with being a full-time money manager. Like many other investors who have chosen this path, I face a variety of obstacles… Continue reading
The false choices fallacy, also known as the false dichotomy or either/or fallacy, occurs when only two options are presented as the sole possibilities, despite the existence of other viable alternatives. This fallacy misrepresents the issue by oversimplifying the choice, often by excluding middle ground or alternative solutions. Many of us tend to view a… Continue reading
Sunk Cost Bias (Fallacy) is a real and damaging phenomenon that we are often unaware of. It is our tendency to continue investing in something, whether it’s money, effort, or time, even when the costs outweigh the benefits. This behavior is associated with “Commitment Bias,” where we stick to our past decisions despite evidence suggesting… Continue reading
Investors and entrepreneurs, everywhere, sometimes to be successful, it’s all about being in the right environment. Just like farming, to reap an abundant harvest, the environment and conditions must all be right. We are taught to hustle, grind, and push through, but sometimes that is not the answer or the best path. It’s hard to… Continue reading
What is Action Bias? One of the most detrimental biases that can hinder investment returns is the tendency to act for the sake of acting. I have personally experienced the effects of action bias in my business, investing, and personal life. To illustrate the concept of taking action when it is unwarranted, I will share… Continue reading
To build an Investment philosophy is to build a road map that guides your investment strategy and process. It is the framework that helps you make investment decisions, based on your beliefs and principles that correspond with your financial goals and tolerance to risk. A lot of investors lack clarity about the importance of a… Continue reading
To “Stay the Course” is more than just time in the market. When investors hear the phrase “stay the course”, it often centres around the idea that time in the market is better than timing the market. I agree with this. However, when I am discussing the idea of staying the course it is about… Continue reading
An investment time horizon is the length of time investors hold an investment until they need the money back. Without knowing how long you want to or need to stay invested, investors may not be adequately allocating capital to the right asset classes to help them achieve their financial goals. TABLE OF CONTENTS: What is… Continue reading
To form your Investment Philosophy, you need a general idea about what Investment Risk is and what your tolerance towards it is. Once investors understand the types of risks involved, they can shape their investment process and overall portfolio to suit their appetite. TABLE OF CONTENTS: What is Risk Vs Return? The definition of Investment… Continue reading
Understanding your circle of competence is important as it can help you make better investment decisions perhaps with an edge over other investors. A circle of competence is a mental model concept that aligns the investor’s skills, expertise, curiosity, and passion. TABLE OF CONTENTS: What is a circle of competence? All investors have heard of… Continue reading
