A few thoughts on my investment process
The psychology behind investing
I think it's interesting to look beyond the positions we take and consider the psychological aspect of our investment journey. So here are a few thoughts and maxims from my reading, life and market experiences. I'd like to make it clear that I don't claim to hold any truths, they're simply reflections, in line with my profile and aspirations.
The aim is not to own property, but to achieve financial independence. Living with complete peace of mind, without depending on anyone, by choice, the adventure is worth it.
What I'm aiming for can't be bought, but earned: a dignified body, a calm mind, a home full of love.
The quality of the process is the most important thing, in the long term the result will depend on the process, in the short term on luck.
In my personal life and my career as an investor, I strive for humility, resilience, patience, moderation and rational thinking.
Cultivating indifference when things are beyond our control is rational and helps us find inner peace. ”May the strength be given to me to endure what cannot be changed and the courage to change what can be changed, but also the wisdom to distinguish one from the other.” Marcus Aurelius.
Investing is 99% thinking and reading, 1% action. If you're looking for adrenalin, don't invest. Good investing is boring.
Curiosity is the key to success "I don't have any particular talent. I'm just passionately curious. The important thing is not to stop questioning. Curiosity has its own reason for existence'“ Albert Einstein.
Perseverance is far more important than outperformance. Be impatient with your actions but patient with the results. Everything that matters comes from compound interest.
The risk is not volatility but downside.
Frugality is the character trait that always comes up whenever I meet a good investor.
The price formation process for financial assets is based on a number of psychological parameters. Frenetic mimicry is at the root of momentum.
By allowing themselves to be guided by their risk aversion, investors fall victim to irrational behavior, the source of most investment errors.
Introspection is essential and we need to recognise the biases we are subject to. “Only when you combine sound intellect with emotional discipline do you get rational behavior” Warren Buffet.
You can get rich by making mistakes, and lose money when you're right. "I'm rich because I know when I'm wrong" George Soros.
Forge your discernment. Iteration solves, repetition pays off.
Thanks for your interest, don't forget to subscribe if you like it