Much of our success in life can be attributed to self-discipline. Author James Clear gives a great reminder of the importance of environment in good decision-making:
“Think about self-control less as the quality of a person and more as the quality of a place. There are some places and situations that lean toward lower self-control and others that lean toward higher self-control. Self-control is about your context as much as your character. Put yourself in good positions.”
This is why we encourage systematic investing and a process-driven investment approach. It can help us filter out the noise and distraction that is so common in our high-information world.
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- Brandon Sanderson is one of our favorite authors and we really enjoyed his long interview on the Tim Ferris Show.
- We haven’t seen the new Captain America movie yet. It’s not a lack of interest on our part, but a lack of enthusiasm from younger family members who used to hungrily consume any and everything Marvel. Have you seen it? Is it any good?
- AI tools keep getting better.
- A good explanation of how the Trump administration proposals for government science funding reform may be off-target.
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Q: Are you sure that there isn’t more to worry about right now with all of the political changes?
A: We recently read that February 19th marked the 5-year anniversary of the “Covid Crash.” This was the 23 day fall in the S&P 500 from its then all-time-high. The index declined 33.9% over that period.
Since that low, the index has had very strong annual returns, more than compensating for that major loss. It is a good reminder that long-term goals should orient our investment decisions, since there are always short-term disruptions to worry about.
Regardless of your political views, there is no question that policy uncertainty will continue to provide short-term volatility. Your personal economy continues to be the most important factor for investment decisions, not what is happening in Washington and elsewhere.