Simple Concepts Research Group

Investing Quotes & Insights: August 22, 2021

Aug 23, 2021

Two investing quotes and one question to consider on your journey to wealth creation.

man on grass field looking at sky

“Without a future well designed, you’ll only take hesitant steps. Taking hesitant steps will have you driven into a corner.”

Investing requires that you have a well-designed system, with a proven edge, that you understand and consistently take action on. If you’re unsure about why you’re buying a particular stock or if you should sell the stock because it’s had to run up or because it’s had a turn down, you are operating with hesitancy. The answers to these types of questions should be built into your system so that you aren’t emotionally manipulated by market prices like other investors.
Make sure that you are investing using a strategy that you understand and buying companies that are trading at a discount well below their value (which produces a large margin of safety for being wrong in your assessment, which you often will be). When you’re investing in a way that you understand, with well defined rules of engagement, there’s no reason to be fearful or hesitant.

man standing on body of water holding paddle

“Change that doesn’t last is easy. Where a lot of people miss the mark on what is required to produce real change, is figuring out the initial investment of energy needed to not only start the reaction, but to finish it.”

We should always assume that it’s going to take way more work and way more effort to achieve the outcome that we want, than what will actually be required (a personal margin of safety). If you have assessed that you’ll need 3 months to get your business up, running and profitable, plan for it taking 6 months. There will be actions that need to be taken, and energy spent, that you can’t foresee until you get started. Keep pace.

One Question to Consider:

  • Where am I most hesitant and uncertain in my investing and why is this the case? How can I mitigate the issue (taking less risk, more positions, etc)?