It’s deeply ingrained in the human psyche that taking action is a positive thing.
And in many cases, it is.
But successful investing means doing exactly the opposite.
Even if that feels wrong.
And it will.
I recently discovered Safal Niveshak.
Meaning ‘successful investor’ in Hindi, it’s a blog created by Vishal Khandelwal, aimed at helping investors become intelligent, independent and successful.
His ideas about wealth and investing are interesting.
And I want to share one with you.
One which I think about almost every day…
Life is simple.
Why do we make it so hard?
Some financial professionals are dismissive of academic research.
They argue that it’s too far removed from the realities of today’s financial markets.
True, academic models are, by their nature, theoretical.
But that doesn’t mean investors can’t learn practical lessons from them.
[Estimated reading time: 4 minutes, 4 seconds - read while you plan your morning's to-do list]
Breaking our lives down into numbers can be scary.
We usually feel one of two things.
Terror, followed by no action.
Epiphany, followed by an intense desire to improve.
I read an article recently from one of my favourites, James Clear, which had the latter effect.
How does the thought of having only 25,000 mornings in your adult life make you feel?
I’m an avid reader.
It’s about personal development.
Which is why I am learning everything I can about learning.
My first stop on that journey is the book Make It Stick, by Peter C. Brown, Henry L. Roediger, III, and Mark A. McDaniel.
A novelist and two cognitive scientists.
My key takeaway?
Elaborate on what you learn to help make it stick.
I’m a huge fan of James Clear.
He’s an author focused on habits and decision making.
His ideas come from a wide range of disciplines, including biology, neuroscience, psychology, philosophy.
In other words, evidence.
At the core is a simple, but powerful question.
How can we live better?
Imagine this: You’ve just booked an airline ticket.
But then you see a cheaper flight online.
The second flight’s departure time is much more convenient – and you could change your ticket without paying an extra fee.
It makes sense to switch flights.
But plenty of people, including Danny Kahneman, might be too afraid to do it.
When Ronald Read died at age 92 in 2014, his friends and family were surprised to discover he had been hiding a secret.
The retired janitor and gas station attendant, who lived in rural Vermont nearly all his life, had quietly accumulated a fortune of $8 million despite never earning more than a modest income.