Investing is easy, it’s just a case buying low and selling high – right? While it might sound simple, we all know that nothing could be further from the truth!
Our brains are not naturally wired to make investment decisions. Emotion tends to take control at the wrong time and distract us from our original plan and purpose. This is one of the main benefits of getting advice as in a sense, it’s about having someone who is independent and can provide counsel to save you from emotional decisions made in haste.
Successful investing requires research, focus, attention to detail and discipline to stay the course. A strategy should be developed to not only guide decisions but also to adapt and keep things on track.
Warren Buffett once said his favourite holding period for an asset is forever. Something made possible only by ignoring the distractions and noise manifested by the media that bombards us every day. It also means keeping perspective and letting the magic of compounding increase your returns over long term.
The same is true about life. We are always making investments in relationships, pastimes, children, work and ourselves, we don’t just sell when times get a little difficult. It takes time and effort with goals and priorities to chart your journey and purpose. In the modern world, it’s easy to get distracted from what is important, to chase short-term gratification or just forget to have fun along the way.
Leaving things to hope or chance is not a strategy in life, or for your investment portfolio. It’s important to set a course and have the right people around to keep you on track.
Rob Gilmour is the Managing Principal of Wealth Simplicity, where it is about living life to the fullest and having no regrets!
The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions.