Your Money: Three things you shouldn’t care about as an investor
By Matt Solberg on November 18, 2023.
It’s never been easier to pay attention to everything that’s going on with the markets, economy, individual companies or your own portfolio. People used to get their paper statements in the mail on a monthly basis to know what was going on with their investments. Now we can watch the changes in market values instantaneously. So it’s more important than ever to filter out the stuff you shouldn’t care about as an investor. Here are 3 things that fit the bill: 1. The amount of time and effort you put into your investments. In many areas of life, trying harder leads to better results. That’s not the case when it comes to investing. In fact, trying harder and paying more attention to your investments will often lead to worse results. There are no extra points for degree of difficulty when it comes to the markets. Most investors would be better served doing less, not more. 2. Your IQ. EQ matters more than IQ when investing. Yes, some level of intelligence is required but as Warren Buffett once said, “Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.” There are plenty of intelligent people involved with the markets but not nearly as many who have control over their reactions. Intelligence alone does not guarantee success in the markets. 3. Timing the market perfectly. Investors waste far too much time trying to find the perfect entry point for their investments. That perfect entry point is only known with the benefit of hindsight. You’re far better off putting your money to work when you have some money to put to work and letting compound interest make up for any ill-timed purchases. For more information please contact me @ 403-504-2780 or email me at matt.solberg@td.com. Matt Solberg, CFP, CIM, is an investment adviser and vice president with TD Wealth Private Investment Advice. Contact him at matt.solberg@td.com or 403-504-2780 12-11
