Investment Ideas from an Athlete-Investor’s trek to the top.
Welcome to #4 in a series of 5 blog analogies that came to me as I slogged to the top of Kendall Mountain in the Kendall Mountain half marathon a few weekend ago in Silverton, CO.
CHECK IT OUT: Kendall Mountain Run
Confident Not Cocky (#4 of 5)
Had I attended the proverbial pasta supper the night before with my friend “Mary” from AZ who was registered for the FULL Marathon or the K2, (I was running the HALF or the K1), its possible that my confidence level would’ve declined by virtue of giving homage to what I call “noise.” You know, those stories your head tells you that aren’t true or supportive or effective? “K2–WOW…I hope I can simply finish HALF…BLAH BLAH BLAH.”
We as investors are barraged by similar “noise”—everyday, and in every medium. CNBC, your local news, your neighbor, internet ads—everywhere, investors fall victim to noise that serves only to promise a death of a thousand cuts as it relates to a confident, rules-based investment strategy.
“Mary” indeed passed me on the way up (tune in for the final outcome!). However, I was VERY CONFIDENT in my race strategy:
1.) I ran the course 5 days before, so I knew what to expect (AKA: Get in the market, wade through the good times and the bad with a sound strategy, so you know what to expect next time–BUILD YOUR INVESTING CONFIDENCE simply by getting on the course)
2.) “Mary” didn’t realize that she could potentially WALK FAST the first 6 miles versus virtually jogging in place and running out of steam. Remembering that the course’s first 6 miles is STRAIGHT UP with an elevation gain of about 3,700 feet! So, consequently, when “Mary” had to stop for breaks (hiccups in the market/market losses) I cruised right on by. As I kept lapping “Mary” I offered her encouragement and motivation—but in the end, I finished ahead of her and she ended up only running the Half NOT the Full Marathon/K2. (AKA: Pace your investment strategy—don’t aim for home runs, and be happy with 75% pace in the good times and hope for less than 25% of the losses in the bad times—If you do this, in the end you WILL outperform)
3.) A bit of an echo above, Water Breaks/Stopping/Losses = Market Timing/Selling and going to cash. While a prudent investment strategy involves CASH as an asset class, you need to ensure your strategy is a disciplined and rules-based one that incorporates using Cash to your portfolio’s benefit, no matter what the size of the account. More on this: www.liberatedinvestors.com. Download this free ebook for more details on this strategy.
Remember; eliminate the noise and get CONFIDENT in your investment strategy. Get data, get rules, Get Liberated.