No Week In Review This Week. I’ll be back next week with the headlines that may or may not be impacting your financial plan and portfolio. Give this a watch and some thought…
The more you move, the easier it is to keep moving. Maintain the momentum.
— James Clear (@JamesClear) February 4, 2021
Morgan Housel: Unfortunate Investing Traits “It’s not exciting, but we should spend more effort on ensuring we’re capable of doing the average thing all the time before we spend a moment trying to do a great thing some of the time.”
Calibrating Capital: Enough Part 2–A Framework “Too often we conflate money being a tool vs being a symbol. It has this sneaky way of subconsciously transforming itself from a currency to a status symbol. And if we let our wealth define us, we will truly never have Enough. To paraphrase Francis Bacon (or PT Barnum, depending whom you ask): ‘Money is a terrific tool, yet a terrible tyrant.'”
The Reformed Broker: How David Beats Goliath in Real Life “David minds his own business and focuses on his work and enjoying his free time, investing based on his own goals and risk tolerance. He doesn’t throw away his time on provocative, negative information about politics, conspiracies, or class, gender and racial warfare.’
Simon Tryzna: One Last Lesson Froom Kobe “I guess that is the last lesson Kobe taught me. I learned to take my time to prepare for anything that life could throw my way.’
Chris Clepp: The Secret of a Successful Financial Planning Strategy “We have seen this pattern of behavior over and over again throughout the history of humankind. It is simply human nature to get greedy and to double down when people have lost all ability to look back into the last time there was a downturn. It is only natural for us to get fearful when we see negative reactions in the market.”
Matthew Ricks, Simon Tryzna, and Michael Kelly: Three “Wise” Guys On–GameStop “I think it’s hard to see regulations being put in place because technically those “content creators” aren’t promoting themselves as “advisors” or “professionals” – merely as “here is what I’m doing, you guys can follow or not.” The other thing we have to remember is the behavioral nature of this. The Fear of Missing Out (FOMO) is real and people are just quickly, and often time, blindly following one another.”
The Irrelevant Investor: Large Caps Are…Underperforming? “Unless you happen to manage a small-cap fund, you probably can’t name too many stocks in the Russell 2000. Because they’re not household names, and because they’ve done so poorly relative to large stocks, we don’t hear too much about them.”
Ryan Krueger: JOMO “He told me, the cool thing about stakeholders is they don’t worry about trading. In no rush, with no need for leverage, he owns patience with simpler math. We shared a smile and a nod to JOMO, the joy of missing out.”
Retirement Field Guide: The Single Best Piece Of Advice For Young Investors “We often underestimate the value of small decisions made over a long period of time. Even for the investor who isn’t currently investing anything and the prospect of investing seems daunting, this simple strategy can overcome a lot of obstacles.’
Thomas Kopelman: Overcoming Regret “Instead of dwelling on the past and beating yourself up over something you can’t change, you could use your mistake as a lesson. You can learn from the ‘dumb thing’ you did, remember it, and choose to not make that same mistake in the future. There is no way for you to time travel back and change your decision so dwelling on the past is useless.”
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining to your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.