Best investment strategy? – The advantage of serenity

We get talking and he tells me about his constant urge to keep an eye on the markets, analyze every little movement and react immediately. I smile and start to tell him about my perspective on a successful investment strategy. “Look,” I say to him, “you’re here on vacation to relax. This constant monitoring of the markets not only causes you stress, but also leads to rash decisions that do more harm than good in the long run.” Instead, I try to teach him the wisdom of not knowing, especially in the context of asset management. What exactly is behind this? Well, I’ll be happy to explain it to you!

For a successful investment strategy, less is more

It may sound counterintuitive at first, but sometimes consciously turning away from daily market movements leads to a calmer mind and, paradoxically, to better investment success. Ignorance does not necessarily mean ignorance. Rather, it is about selectively not wanting to know, a kind of mental filter that protects you from the flood of information. This allows you to concentrate on the essentials: a long-term and successful investment strategy. By distancing yourself from daily fluctuations, you avoid panic reactions to short-term market movements and remain true to your investment strategy.

A comparison of financial strategies: a case study

Imagine two investors: Investor A checks his portfolio daily, while Investor B chooses to check only quarterly. Investor A may be under the illusion that they are always up to date, but this hyper-attention often leads to impulsive decisions and a mountain of transaction fees. Investor B, on the other hand, who pursues the strategy of conscious ignorance, remains more relaxed and makes the wiser decisions in the long term.
A supposedly best investment strategy is not about avoiding reality or ignoring important information. Rather, the aim should be to strategically decide which information to pursue and which to consciously avoid. In this way, selective knowledge can be used to make decisions that are not influenced by the hysteria of the moment, but by a well-considered strategy.

Sustainable investment strategies: tips from Point Capital

The vacationer I met is not alone with his worries. Over time, we have discovered that many investors have very similar concerns. Worried about their investments, they follow the markets meticulously. I would like to allay your fears here and now – a small fluctuation in the price trend is no cause for concern. We always keep an eye on the markets for you and take care of your investment strategy so that you can do exactly what I’m doing here right now – sit back and enjoy your vacation.So, next time the markets fall and the news sounds the alarm, remember: less is more. Let us manage the storm for you while you leave the agitated hamster behind and become a relaxed sloth.

Sunny greetings from the beach

Yours, Mark Stock©

Mark Stock is a member of the Point Capital editorial team. “I am a stock market enthusiast and am passionate about economic history. I have been following the ups and downs of the markets for years and, of course, invest myself – preferably in shares. So my name says it all. Every month, I take up what I consider to be an exciting topic. And since the focus is on the content and not on me personally, I write under a pseudonym.”