Learning to accept uncertainty by building failure into your investment process makes a lot of sense. When investing, learning how to accept short-term failure is actually a good way to avoid long-term failure. In my podcast, I tell the story of Annie Duke. Anyone who plays poker, knows the name Annie Duke. She took an interesting road to become a World Series of poker champion.
Assuming that you're never going to fail or "going all in" with 100% certainty is a recipe for a large failure. You'll end up compounding mistakes by overreacting because you didn't plan for a poor outcome. Investors with truly diversified portfolio are always going to dislike something that they own. Buy-and-hold investors in the stock market know that they are going to experience a drop in value at times. And no investment strategy is bulletproof.
Date Posted: 05/24/2016 Advice provided in this article is meant for educational purposes only and financial education is important to us. Before making decisions regarding your personal financial situation, please consult an advisor or conduct your own due diligence. If you would like to discuss your Retirement Income Plan with an HCM Wealth Advisor, please give us a call – 513-598-5120. Located in Cincinnati, Ohio, we serve clients in 28 states, and we’d love to help.