It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to changeCharles Darwin
There are hundreds of books on investment.
None to my mind adequately explain why so many people are such poor investors.
Until the reasons better understood, small investors will continue to make the same mistakes and continue to suffer poor returns.
This blog explains the problem and offers a unique solution.
I have worked in the world of finance for the better part of 40 years. I have made many mistakes and it took me a long time to understand the fundamental truth about investing.
“What weakness,” I hear you say.
We all make dumb decisions when investing. It is a genuine weakness.
The most important difference between an elite investor and an amateur is that the elite investor recognizes his or her weakness when investing, strives to understand it, and takes steps to overcome it.
Only those who recognize their own weakness desire change.
Adaptability, willingness to change, is the greatest strength but it is born of humility, of the recognition of weakness.
Investing is about overcoming our psychological weakness by developing awareness: Self-awareness to avoid competing at a disadvantage and environmental awareness to better identify opportunities.
Elite investors understand themselves and they understand how markets work.
No matter how many books on investment you read; no matter what investment system you use, unless you understand why investment is difficult and can identify the journey you must take to overcome this difficulty, you will always struggle to be a good investor.
This book is a guide for those who wish to make that journey although the book did not begin with that purpose in mind.
We call our retirement account Greygull. Grey represents old age and gulls are a symbol of freedom.