Mindset is one of the most important, yet neglected areas. Here are just a few ways it is directly relevant:
- Risk. Managing risk, particularly when investing in the stock market.
- Volatility. Managing volatility, also more important in the stock market.
- Greed. Managing greed, this is relevant to both the stock and property markets. How often have you been carried away with the upside and you forgot to protect, or even objectively analyse, the downside?
- Cognitive Biases. Understanding cognitive biases we all share. An example is the Recency Bias, where we tend to give too much weight to recent events or data. How well do you manage this, or have systems to manage this?
- Purpose. Lastly, but most importantly, seeing the bigger picture of what investing and wealth creation is all about. Do you link this work to a higher purpose, such as making a contribution or perhaps leaving a legacy? Here we share with you our principles and practices of True Wealth, so we can grow as people and investors.
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“You exist only in what you do.”- Federico Fellini.