Meaningful Returns

Behavior. That’s it.

The best strategy in the entire world very quickly becomes nothing more than mediocre if you can’t personally stick to it.

Now, on the basis of empirical evidence some strategies are objectively better than others. Much better. BUT, that additional “better” can be eroded in just one instance of bad behavior, the most typical of which is selling something after it’s value drops and then buying something (maybe the same thing) once it’s value has risen. (This has been called the “behavior gap,” and there is a book by that name you should read.)

So when you think about investing, the number one thing that pops into your head should always be WHY? But once you know why and you start thinking about how, you must ask yourself, will I be able to stick with this investment through thick and thin? If not, the investment is going to be a whole lot of thin.