Shifting Your Portfolio Because Of Donald Trump Or Brexit?

When I was 14 years old, I set a lofty goal.

I wanted to race my bike at the Olympics. The harder I worked, the better I got. I read about how to train. I read about tactics. I worked so hard my organs hurt.

I accepted that the harder I worked, the better I would get. In Malcolm Gladwell’s book, Outliers, he wrote about the “10,000-hour rule.”

That’s the time it takes, he says, to truly master something. Geoff Colvin agrees in his book, Talent Is Overrated.

But when it comes to investing, the opposite is true. The less you think about the market, the better your returns. It might be the only place where laziness beats the pros.

Here’s why thinking too much leads to poor investment returns.

Image by Pixabay

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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3 Responses

  1. Oz says:

    Great article Andrew. It reminds me of the “rat brain” study – when shown green and red lights and asked to predict which will come up rats beat humans as once they realised red was 25% more likely to flash they just kept hitting red. Humans, despite also realising red was 25% more likely couldn’t resist imagining patterns and hitting green occasionally!

  2. Lisa says:

    Hi Andrew,

    I love your book and appreciate your continued advice. Since “Millionaire teacher” was written some time ago, I am curious if you still believe the portfolio you recommend in the book is a good choice or if there is anything you would change. I have set up my investments at TD following your exact opinion and am happy to make changes if necessary. Thank you very much in advance. 🙂

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