Excellence in investing is not any different from other fields.
Daniel Chambliss followed an experiment and
determined what led to success.
Excellence is mundane.
Investing has to be lacking excitement; must be a
dull process. Anything else is not investing, it is speculating.
Excellence
is coming together of many small things done consistently and
over long periods of time. He said “maintaining mundanity is the key
psychological challenge” in the pursuit of excellence.
We
underestimate the impact some habits can create, like Savings & investing
for example.
The
Brain seeks thrill and excitement, in overanalyzing and predicting the future.
It can not fathom a simple mundane process to follow a systematic investment.
If we start one, it creates noise either with over excitement or lack of any,
creating roadblocks to the process.
“If you pursue 'returns' too
vigorously, you’ll never get them”
Patience is the most crucial element. Most of the investment philosophies will be effective, just give it enough time. Our ability to stay the course matters the most.
The Formula for Excellence in Investing (Mundane!)
