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Investors Therapy #12: The perennial investor

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Hey Tribe, We hold onto our core beliefs because they serve a few functions. When times are tough we
 

Investors Therapy

November 11 · Issue #12 · View online
The best investors focus on improving their thinking habits before investing in the market. Investors Therapy is a monthly newsletter that covers all forms of investing and helps investors understand their psychology to make better investment decisions. If you're ready to take the next step in your investment journey, subscribe!

Hey Tribe,
We hold onto our core beliefs because they serve a few functions. When times are tough we depend on these beliefs to strengthen our resolve so we can recover from set-backs.
Other times these beliefs form mental models we use to filter out info to make the world more manageable. This works for 90% of the situations we face in our lives, but our beliefs can falter when they face edge cases that are incompatible with our mental models. These edge cases are few in number, but the impact they have on our lives disproportionately outweighs the other 90% of the situations we face. Some people are able to break past these road blocks to live fuller lives. And others are unable to do so and instead they force their mental models into these edge cases even though they don’t necessarily work.
I’ve seen the same game play out when people make investments. We tend to fall in love with certain asset class and bemoan others. We skew portfolios between either pre tax or post tax investments or forget to balance publicly trade assets with private equity.
In order to become a perennial investor, someone who thrives during various market cycles and remains mentally flexible towards the opportunities the market presents, you need challenge your investment beliefs and learn to become asset class agnostic. So long as you understand the underlying business model and risks of a given asset, you open yourself up to new possibilities and decrease the likelihood of investment failure. Being a perennial investor doesn’t mean you’re a full time asset buyer, it means you shift between strategies of asset accumulation and sometimes sitting things out.
Cheers,
Jordan



So true. (Source reddit investing)
Investor Psychology
Experiential Prophylaxis: Prospect Theory | Highbrow
It pays to be pessimistic, shows new research into entrepreneurs
Stocks
Zillow Plunges 20% as Cooling Housing Market Curbs Guidance | Fortune
Stocks Vs. Real Estate: Which One Wins? | Seeking Alpha
J.C. Penney has been losing market share. | National Real Estate Investor
Startups/VCs
RealtyShares’ downfall shows perils of crowdfunding - SFChronicle.com
Why do digital health startups keep failing?
Economy
The US economy added 250,000 jobs in October - CNN
Top 10 Country GDP Ranking History (1960-2017) - YouTube
Lowe's is closing 47 stores in the US and Canada - CNN
Real Estate
Secondary Markets Attract CRE Investors with Higher Yields | National Real Estate Investor
Experts say California needs to build a lot more housing. But the public disagrees - Los Angeles Times
Rents for U.S. Homes Drop for First Time Since 2012, Zillow Says - Bloomberg
With 25,000 new apartments in D-FW this year, will there be enough renters? | Real Estate | Dallas News
Careers, Society, and Personal Development
Europe’s history explains why it will never produce a Google - Charlemagne: Waiting for Goodot
The Willingness to Learn and the Pressure to Be Confident — This is going to be BIG...
Why Feeling Uncomfortable Is The Key To Success
The Great Sort and the Rise of Populism  |  Ricochet
Crucial nuclear fusion breakthrough solves one of its biggest problems
Emotions Pass Along A Friendship Network Like a Contagion, Study Finds
Favorite Sayings
Let There Be More Than Light by Bjørn Lomborg - Project Syndicate
Watch/Listen
How MyPillow Founder & CEO Mike Lindell Went From Crack Addict To Self-Made Multimillionaire | CNBC - YouTube
Sam Quinones on Heroin, the Opioid Epidemic, and Dreamland – Econlib
Amazon Go: No cashiers, hundreds of cameras, and lots of data - CNN
Howard Marks: "The Most Important Thing - Origins and Inspirations" | Talks at Google - YouTube
10 Empires That Came Close To World Domination - YouTube
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