The Market Doesn’t Care about Your Intentions

(edited transcript) … One of the things that people get confused again is their intentions versus what’s actually going to happen. And when we point these things out or when we tell these anonymous stories, everyone kind of laughs at them. But we’ve seen really smart people make this subconscious, it’s not conscious, but subconscious mistake, which is thinking their intention or what they name something or the goals that they’ve laid out, which might sound super reasonable and rational, have any correlation of note to what the market’s actually going to bear them at a given point in time. And so we’ll have people going like, “Oh, this is my hypergrowth portfolio.” I mean, I get that that’s what you want it to do. I look at it like, “This looks like a pretty reckless portfolio.” People who get really conservative because like, “This will protect me” completely oblivious to, again, the erosive impact of inflation and how it’s not guaranteeing protection. If anything, it’s guaranteeing that you’re going to lose what ultimately is most important, which is purchasing power with whatever funds you have. And so that’s why we work within a team here. That’s why we have such a great external team. We all need partners to point out our blind spots or when we slip into one of these subconscious fallacies. They’re everywhere. The mind and mental aspect of investing, you know, is far more complex than the math.

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The Market Doesn’t Care about Your Intentions

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