Show Notes
As we rapidly approach November, one topic seems to suck up all of the oxygen in terms of current events—and it’s not Thanksgiving. No one knows what will happen after the election, but given the razor-thin margins and the heated political climate in America, turbulence is likely. To succeed in investing long-term, focus on buying solid companies that meet Rule #1 criteria and are “on sale.”
Many people struggle with this due to stress, market fluctuations, or other distractions. Managing your emotions is key to making rational investment decisions, which depends on how well you take care of yourself. Stress and fear lead to poor choices, so practice staying mindful, whether through meditation, exercise, or reading, to keep a clear head and avoid emotional decisions.
On this Vault episode pulled from the last presidential election cycle in the US, Phil and Danielle discuss the negative effects of stress on one’s investing practice and how mitigating that stress can improve your well-being in addition to your portfolio.
For more help with avoiding costly investing mistakes, click here to get a free copy of 10 Do’s and Don’ts of Successful Investing: https://bit.ly/3XyEDbD
Topics Discussed:
COVID-19
Li Liu
Self-improvement and self-discovery
Ralph Lauren
Tesla
Circle of competence
Dealing with stress
Transcendental meditation
Resources Discussed:
The Seven Storey Mountain
For Love of the Game
Turtles All the Way Down
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More from InvestED: The Rule #1 Investing Podcast
In the high-stakes world of investing, mindfulness helps value investors stay focused, patient, and rational. It strengthens resistance to fear and greed, promotes long-term thinking, and sharpens decision-making. By staying present, investors can tune out market noise and stick to their principles. In this Vault interview, Phil and Danielle revisit a conversation with mindfulness expert Dawa Tarchin Phillips. His insights on leadership and mindfulness equip investors with the patience, clarity, and resilience needed for volatile markets. By integrating mindfulness into investing, he provides tools to stay focused and make rational, long-term decisions—essential skills for any serious investor. For more inspiration from some of the investing world’s most brilliant minds, click here for Phil’s free guide to The Best Investors in the World: https://bit.ly/4haMBQ6
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So a business you own is undergoing an event that’s made the future less certain—so what’s your next move as a value investor? Finding the right time to sell can be difficult when the M.O. is to buy and hold, but knowing when to break with an investment can be just as important as knowing what to buy in the first place. Investing success hinges on finding antifragile companies—those that thrive in adversity and compound growth over time. Focusing on a few resilient businesses, rather than over-diversifying, leads to better long-term returns, especially during downturns. Rather than timing the market, investors should prioritize companies with strong fundamentals and compounding potential. Patience and discipline are vital to benefit from their growth through adversity. On this week’s show, Phil and Danielle discuss how to approach your investments having events and what the Rule #1 philosophy can tell us about these situations.