RETIREMENT INVESTING INSTITUTE          

      education and mentoring for your retirement

 

 


 

Unraveling the Mystery of Successful Investing

In our computerized economy and society, we benefit, and have come to expect perfect performance, from wonder drugs, global communications, massive databases, and many technical experts.  And we've come to demand positive results immediately.  We are driven to be perfect in school and on the job.   We fantasize that our favorite sports teams should win every game and the annual championship.

Erroneously, we also apply such experiences and beliefs to Wall Street and
to our investing lives.  In reality, successful investing requires TWO
elements: good investment vehicles (well-managed mutual funds, or stocks and bonds of good companies) in the hands of a proficient user.  The parallel is good tools in the hands of a skilled craftsperson, or an excellent tennis
racquet in the hands of a strong player.  Both elements are needed for
success.

The solution to the apparent mystery of Wall Street begins with accepting
fact that investing is an art rather than a science.  We must accept our
human imperfection, as well as the fact that markets will go down as well as
up.  Not all of investment choices will win, nor will all at least end up
breaking even!  We must accept this.  We must also learn to make decisions
and become flexible in the face of uncertainty and constant change.  Success
in investing requires not only good information but also emotional
self-control.