Investing can test even the best of us and reveal our true temperament. Most ideas may work well in theory or on paper. Rarely do they translate effectively into the real world. Humans are not well-equipped to stay the course when it comes to investing; often our biggest enemy is ourselves. I often notice this… 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
👑 Penelope was the Queen of Saying NO. She was the wife of Odysseus, the Queen of Ithaca, and the daughter of Spartan king Icarious and Asterodia. Penelope is depicted in the cover image rejecting a man who has come bearing flowers. Despite more than a hundred attempts to lure her, Queen Penelope was known… Continue reading
😕 What is Decision Fatigue? Decision fatigue is a phenomenon that affects each and every one of us. Every day, we are faced with thousands of decisions, from what to wear to what to eat, which route to take, and so on. These decisions accumulate and by the end of the day, we feel mentally… 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
Investing is not just about numbers, charts, and graphs. New research has revealed that genetics and personality traits also play a significant role in investing. (View Research Here). Our personality traits, experiences, and background can all impact our investing outcome. By understanding your “Investor DNA” it can help you to make better investment decisions that… Continue reading
Investing can be complex, but Stoic Investing can help navigate it effectively. Stoicism is a philosophy that has been practised globally for thousands of years. At its core, it teaches us to focus on what we can control and accept what we cannot. This approach is particularly useful for investors, as it helps us to… Continue reading
The results of returns are often heavily influenced by patience. A patient investor can navigate the complexities of the market while remaining disciplined and calm for long durations of time. Impatience is a characteristic that is lacking in the markets. I believe if investors cultivated the virtue of patience, they would be able to combat negative behaviours and achieve their long-term goals.
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Investment Discipline is a crucial aspect of investing that occurs after an investor has laid out their Investment Philosophy. It involves several factors, such as the investing strategy, Risk Tolerance, asset mix, and a refined investing process. Once the plan is in place, all investors need to exercise Discipline to see their objectives achieved. Discipline… Continue reading
