Top 5 of the Week of December 10th
The team at Farnam Street heads up our Top 5 of the Week with their view on playing the “long game.” Epsilon Theory writer, Ben Hunt, also considers the strength needed to survive the game of markets. And Ryan Krueger of Krueger & Catalano understands the fundamental concerns of an investor.
From Of Dollars and Data, Nick Maggiulli discusses who your real competition is. A Teachable Moment’s Anthony Isola uncovers the problem with being oblivious to annual inflation…
Change the Game
- The thing about the long game in investing is that it’s played successfully by those on the quiet and with immense patience
- While many consider the long game to be dull, if played from an early age the results can be incredibly surprising
- In contrast, doing what everyone else is doing will only help you achieve “the same results everyone else is getting”—something to think on
How patient are you? Share your comments in the section below
The Game of Markets
- The game of markets is a hugely important one that happens within the larger game of life—and it’s preferably one we’d all like to finish with a happy ending
- To do this, you have to remain focused on what you want to achieve in the game—the happy ending—and work back from there
- If your aim is to maximize your gains or wealth though, you’ll never achieve the right ending—instead, aim to minimize your regret in the overall game to actually realize the best results
The Two Important Questions
- There are two fundamental questions which plague every investor, these are, “Am I going to be okay?” And, “How much is enough?”
- Determining the right answers for yourself will provide you with the best gift you can ever receive in investing; peace of mind
- The best way to achieve this is through humility and deeply informed simplicity
Focus Your Concentration Elsewhere
- In wealth management, there is, of course, competition—objectively speaking—however, don’t let yourself get distracted by concentrating on that competition
- From a practical point of view, that time would be better spent on adding value to your clients
- Focus instead on competing with yourself and your own investment biases, habits, and behaviors
Ignorance Is Bliss—Or Is It?
- Without the support of annual inflation adjustment, building a good pension becomes very difficult—an issue many workers are oblivious to
- The problem is that a lot of pensions have to endure reverse compounding of purchasing power—something that doesn’t affect social security
- Compound interest generated by returns in the stock market is the remedy to a potential “much-decreased future standard-of-living”—with or without a pension
Top 5 of the Week is a summarized collection of financial investment articles that we like and think you might like too. Having written thousands of pages of equity strategy and company research between us, we understand the allure of the ever-changing world of finance. Investing is an art form—and like everything, something you can work on and improve at. There are some excellent writers out there on the finance web, some offer a running commentary on today’s market, some are doing research, some have tips on how to Become a Better Investor, and some just lift the cloud of fog behind a lot of financial jargon. Each week we will keep you up to date with the top 5 articles worthy of your attention.
Anything you would like to discuss about this week’s top 5? Do you have another favorite that isn’t mentioned here? Feel free to add it below. Let’s start a discussion in the comments section!
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. The Become a Better Investor Team doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Top 5 of the Week and cannot guarantee the accuracy of its information.