Foolish investors win by having fun, making money, improving analytical skills, and learning to make a lifetime commitment to a lifestyle that incorporates saving and investing as ordinary practices.
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As investors who would rather kiss a frog of an undiscovered stock in hopes of it transforming into a prince of a winner, we compete by trying to beat the Dow, the S&P, the Nasdaq 100, or maybe even Uncle Jake (who can't stop letting us know about his great portfolio returns). Everyone wants to boast being the number one analyst, mutual fund, or investor on the block. Unfortunately, by going for investing gold, investors can become fixated on their results, often losing sight of many mini-successes attained by simply participating in the investing process.
It's easy to have faith in yourself and have discipline when you're a winner, when you're number one. What you've got to have is faith and discipline when you're not yet a winner."
-- Vince Lombardi, Football Hall-of-Famer
It's especially discouraging if you've worked hard at building an investment portfolio, only to find your returns missing the mark of whatever benchmark you've established as the one to beat. You've spent lots of time doing your homework by learning as much as possible in the Fool's School. With your confidence piqued, you carefully constructed a portfolio of index Funds, the Foolish Four, Rule Breakers, and Rule Makers. And yet, you are not showing returns as successful as the next guy's. It can be terribly frustrating and disappointing over the short-term. To paraphrase a well-known saying: "When the going gets tough, Fools go researching."
The Rule Breaker portfolio is currently being beaten. While several of our holdings are beating the market during the past year, the overall portfolio is losing to the market averages. While we wish it weren't so, it's a fact of life. In the words of the legendary coach Vince Lombardi, "It's not whether you get knocked down, it's whether you get up." And Fools always jump back up and try again. Or, in this case, jump back up and hold to their long-term guns.
This short-term change of fortune isn't going to change the way we invest. It actually gives us time to review our investments, contemplate the mistakes we've made, if any, and spend time considering our future moves. It's an opportunity to learn and become even better, smarter investors as we move forward in this unpredictable game called the stock market. After all, when we invest our cash in a strong business, we are planning to do so for a minimum of five years. Coach Lombardi didn't take out his Super Bowl quarterback because he got intercepted on his last possession. For most of our holdings, we are barely scratching the surface of time.
But, what of our short-term losses? Or, what if an investor underperforms by a slight margin for a few years? Is that reason to feel like we've failed? Absolutely not!
Foolish investing is about having fun, making money, improving analytical skills, and learning to make a lifetime commitment to a lifestyle that incorporates saving and investing as ordinary practices. While it is our long-term goal to beat the market, we Fools enter our investing careers with total cognizance that there will be periods of portfolio under-performance. We know that, over the long-term, we'll be winners. Maybe not THE winningest; but winners for sure. And, we will have had fun along the way, and not sacrificed time with our friends and family to day trade our lives away.
"You never achieve real success unless you like what you are doing."
-- Dale Carnegie
Fools win because we enjoy the process of investing, whether through a simple technique like investing in an S&P index fund, or committing to the more time-consuming process of finding Rule Breakers. We remain optimistic in a volatile market environment, because we're always doing the best we can, enjoying learning, and keeping our eyes focused on the future. It's not necessary to finish in first place to be a winner. If you enjoy the process and acknowledge the successes you've achieved, you've earned a place in the winner's circle.
A Fool's goal is to make money within the parameters of the time allocated to the "sport" of investing. We use our current investing knowledge, which we are always seeking to expand. If you can integrate investing as a natural and ordinary part of your life, both you and your pocketbook will be a winner over the long term.
I leave you with the words of Ralph Waldo Emerson as the ultimate guide to being a winner. Add the enjoyment of your personal investing journey to his words of wisdom to have firsthand knowledge of what investing Foolishly is all about.
On Success
To laugh often and much;
To win the respect of intelligent people and the affection of children;
To earn the appreciation of honest critics and endure the betrayal of false friends;
To appreciate beauty, to find the best in others;
To leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition;
To know even one life has breathed easier because you have lived.
This is to have succeeded.
-- Ralph Waldo Emerson
Have a successful and enjoyable weekend!
"Coach" Venus
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