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
An investor’s Philosophy will be deeply influenced by how they view, interpret, and interact with the stock market aka “Mr Market”. Before investors start creating an investment philosophy and strategy, they need to consider the two terms below. These concepts refer to the “belief” component when discussing and developing a strategy. Your views and alignment… Continue reading
The debate on holding cash (Dry Powder) will always rage on. The reason is due to cash being a low-yield investment compared to other options such as bonds and stocks. I have very different views about holding cash that is largely shaped by my experiences and my overall financial objective. TABLE OF CONTENTS: A brief… 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
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
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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