For Financial Health, Consider an Information Diet In today’s digital age, investors are drowning in unproductive information. Market commentary and news flow often thrive at the extremes, drawing the attention of investors during periods of market exuberance or decline. When investors zoom in on this noise flow, they tend to make less rational and unprofitable…
If You Want a Good Life Then Improve Your Healthspan There is a direct correlation between your health and your quality of life. As your health suffers in later years your quality of life diminishes. It is not how many years you have lived but rather how many of them were good. Poor health significantly…
Rising Geopolitical Risks and Overcoming the “Focusing Illusion” The escalating geopolitical tensions significantly influences our perceptions, often leading us to draw connections between complex global events and anticipated financial market shifts. In the process, we tend to lose sight of our long-term objectives, treating current events as pivotal moments without fully acknowledging their historical insignificance…
Money Troubles vs Money Worries If you want more control over your finances, you might be surprised to find that focussing your attention on your money worries can actually lead to more negativity, which often results in feeling even less in control. The first step is to distinguish between money troubles and money worries. Financial…
A Controversial Take – It is Better to Optimise for Behaviour than for Return Most investors know they cannot successfully time the markets with any consistency. It is widely accepted that to increase the odds of investment success you need stick to a well-defined plan and strategy over time allowing compounding to work its magic.…
Experience vs. Expertise We often confuse experience with expertise. Ben Carlson emphasised this point, stating that “Experience is not the same as expertise. Just because you’ve been doing something for a long time doesn’t mean you’re an expert.”Top of Form In various fields, there’s a common misconception that experience automatically translates into expertise. While experience undoubtedly…
Shifting From Outcome to Process A goal is a specific, measurable objective that you want to accomplish. It comprises several key components: What do I want to achieve? Why does it matter to me? How will I achieve this outcome? Setting goals helps clarify what we want to achieve and the behaviours needed to reach…
How to Beat the Average Every investor has a deep desire to beat the market. It is ingrained in human nature. In a 1988 speech, Charlie Ellis* explained: “There are three ways in which you might try to achieve superior results: one is physically difficult, one is intellectually difficult, and one is emotionally difficult.” He…
The Illusion of Control The world is complex and feels out of control. Being human, we have a deep desire to be in control. We have a greater sense of wellbeing when we convince ourselves that we have control over events and outcomes even when this is not true. There are many aspects in our…
Goals, Resolutions and the Lack of Follow Through Every year we start with good intentions and New Year’s resolutions. However, research suggests that fewer than 25% of us follow through on these intentions. Weight loss is a common example – we intuitively know what to do but don’t do it. The path to successful weight…