Positive Outcomes

The desire for more positive experience is itself a negative experience. And, paradoxically, the acceptance of one’s negative experience is itself a positive experience

Mark Manson – The Subtle Art of Not Giving a F*ck

Think about that for a second….

  • Wanting a positive experience is actually negative
  • Accepting a negative experience is a positive experience

This quote comes from a great book titled “The Subtle Art of Not Giving a F*ck“. It’s been sitting on my shelf for a few months, staring me right in the face. I decided today to crack it open and hopefully get the creative process moving again.

Source: Amazon.com

As I read this book, I kept thinking about clients I deal with and how they almost seem to have a backwards approach to looking at their investments.

If we take Mark’s quote and adjust it a bit, we see a lot of commonalities:

  • The desire for positive investment results is actually a negative investing behavior
  • Accepting the risk of negative investment results is actually a positive investing behavior.

I kept throwing this thought around in my head and it resonates so well.

When investors understand the risk of their investment decisions, and how losses can be expected over certain periods of time, the tend to show better behavior around maintaining an investment strategy.

While on the opposite end, investors that only expecting positive investment results seem to jump ship at the immediate sign of a loss or strategy going to wrong direction.

Take Bitcoin for example, how many of your Uber drivers are still recommending it?

Avoid being a statistic and focus from the on-start on a proper investment strategy. When I say strategy, I’m not talking about the batting order of you’re investments but rather the strategy behind why you plan to make some specific investment.

Whether you are investing for college, a home, retirement, or fun, make sure you understand the outcomes before you take the first step.

  • How much can you lose?
  • How long can you invest?
  • What happens if your investment strategy doesn’t work out?

Study after study keeps showing we are all emotional wrecks and we need some way to THINK before we make decisions. So focus on both the positive and negative aspect of your investment. Odds are, if you thoroughly research your investment decision, your behavior around the investment should dramatically improve.

Source: JPMorgan Guide to the Markets 2019
Please ignore typo’s, I will be editing grammar as I go!
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.