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March 5, 2024

Financials Matter

"It's Not Just About Finance"

What You “Know” May be Your Worst Enemy

Asking someone what they know about investing is like asking them what they know about life.

Some will argue that humans are more advanced today than any other time in history.  And that’s mostly true.

However, if you take the cumulative knowledge of 7 Billion people (with thousands of years of recorded history to learn from) you’ll discover that Human Nature NEVER changes.

As a result, we make the same mistakes over and over again.

How is it that, with all the advancements in science and technology, we can’t even create a blade of grass?  We can create something that resembles a blade of grass but it can’t reproduce itself on its own.

So, in the grand scheme of things, we really know very little.

Let’s apply this to investing.

Today, we have access to more information on how to invest than at any time in history.  It’s right at your fingertips…literally.

So, why do we make the same mistakes over and over?

It’s simple.  We all have a default mechanism in our brains that’s linked with our emotions.

It works like your computers default mechanism.  If we fail to operate in the way our computer is programmed, it will default.  We’re limited to the information stored in our computers.

It’s the same with your emotions when investing.  We base too many decisions on what we think or feel should happen.  And we don’t consider many other factors that move the markets.

The results?  We make the same mistakes over and over again.

The good news is you can re-program your investment mindset by changing your default mechanism.

And one of the best ways to do that is by becoming a Premium Subscriber to our monthly newsletter (HERE).

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