Barry Ritholtz, of The Big Picture investing blog, produced the graphic below, and we don’t think we could have created anything clearer.
In Barry’s commentary, he outlines some of the things we as investors can spend a lot of time thinking or worrying about, but ultimately can’t control (financial markets, the economy, elections). He also does a good job of outlining things in our control, like our investment allocation, savings and media consumption, creating a clear delineation of where our focus should lie. He closes with something that we think is critical, and often overlooked:
It all comes down to the single most important thing that is within your control: your own behavior. If you can master that, it is almost impossible not to succeed as a long-term investor. I have studied this for decades. I still need to practice it each and every day. And each and every moment.
We feel the same—each new cycle and news story allows for a chance to practice investment discipline. Let us know if you want to talk more about it or share with someone you care about.