The #1 Enemy of Smart Investing
I was determined to do it this time… climb to the top and make the leap!
This last weekend was my annual father/daughter date weekend at Camp Highland.
Camp Highland creates a meaningful environment for me to connect with my daughter, Avery Kate, at a heart level while enjoying fun activities and adventures designed to help you conquer your fears.
One fear inducing adventure is the Pampered Pole, which is a telephone pole that stands about 40 feet tall amidst the trees.
The objective is to climb to the top on the metal staples attached on either side and stand on the top. While protected with only the critical safety gear, you are then to leap to a trapeze hanging in the trees that appears to be out of reach.
While I’ve seen many climb, stand, leap, and grab the trapeze, the stand, leap, and grab has eluded me for the last few attempts.
I knew in my head that it was possible to accomplish, and that the safety harness would hold me as I leaped into the air. There was a bigger problem standing in the way.
It was me!
It was my emotional connection to a fear of heights, and jumping into the air trusting that the safety equipment would hold me.
How does this relate to investing?
Long-term investing, and equity investing in particular, requires a long-term view that trusts in the long-term outcome. And most importantly, ignoring the emotional impulses to make buy and sell decisions based on short-term circumstances.
The number one enemy to smart investing is the investor because it is very difficult to make smart decisions based on a plan with a long-term outlook especially during volatile market conditions like the present.
That enemy is defeated and creates good long-term investing decisions by NOT going it alone.
In fact, there are two areas in your life you should NOT go it alone – your health and wealth.
Your portfolio will thank you.
“The investor’s chief problem – and his worst enemy – is likely to be himself.
In the end, how your investments behave is much less important than how you behave.”