Post Category → Investment Philosophy

How to know what your Circle of Competence is?

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.

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 →

Understanding Investor DNA can help you make better money decisions.

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 are aligned with your goals and personality.

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 →

How can Stoic investing contribute to better outcomes?

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 manage our emotions and cultivate discipline.

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 →

How to become a more patient investor?

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.

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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The best way to beat the market is with a powerful investment discipline.

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.

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 →

How to make better investing decisions with 2nd-order thinking?

1st and 2nd-order thinking are thought processes that we go through when analysing situations in all aspects of life. 1st Order thinking is not inherently bad, but it is essential to try to think better and apply Second Order thinking when necessary. The Second Order thought process requires energy, problem-solving skills, critical thinking, and looking into the future at the consequences of your decisions.

What is 1st and 2nd-Order Thinking? 1st and 2nd-order thinking are thought processes that we go through when analysing situations in all aspects of life. 1st Order thinking is not inherently bad, but it is essential to try to think better and apply Second Order thinking when necessary. The Second Order thought process requires energy,… Continue reading →

Here are the most popular Investor Biases to avoid.

Investor biases can be categorized into two types, cognitive or emotional. These biases are irrational thoughts and feelings that affect our decision-making, whether subconsciously or consciously. An investor can have one or multiple biases that lead to misjudgments. Recognising our behaviours and biases is essential to becoming a better investor, but we cannot wholly eliminate them. Instead, we can identify them and put measures in place to overcome them

What are behavioural biases? Investor biases can be categorized into two types, cognitive or emotional. These biases are irrational thoughts and feelings that affect our decision-making, whether subconsciously or consciously. An investor can have one or multiple biases that lead to misjudgments. Recognising our behaviours and biases is essential to becoming a better investor, but… Continue reading →

Ignoring the noise is the best advice I can give.

Ignoring the noise can be difficult in the world of investing. However, it’s important to remember that no one else has your exact investment strategy, timeframe, and goals in mind. You are the only one who truly cares about your long-term wealth creation and financial objectives. Don’t give up your independence and decision-making power to outside influence.

Ignoring the noise can be difficult in the world of investing. However, it’s important to remember that no one else has your exact investment strategy, timeframe, and goals in mind. You are the only one who truly cares about your long-term wealth creation and financial objectives. Don’t give up your independence and decision-making power to… Continue reading →

The best investing edge is to know your behaviour.

It’s important to know your behaviour and emotional responses towards money in order to invest successfully. Improving your investment philosophy and investment processes can help eliminate irrational thinking.

It’s important to know your behaviour and emotional responses towards money in order to invest successfully. Improving your investment philosophy and investment processes can help eliminate irrational thinking. However, there are a few other areas that can help you recognise your behaviour and how to overcome it. The first step is to be aware of… Continue reading →