You Lack the Focus to Be a “Great” Investor
Redefining what it means to be a great investor.
Here’s a reality check that every investor needs to hear:
You’re not a ‘great’ investor and probably never will be.
That is if your definition of being a great investor is outperforming the stock market.
In this post, I explain how our limited attention causes investors who try to be great to lose time and money. I’ll explain a rational definition of what makes a ‘great investor.’
It’s simply not possible to stay on top of every stock
At the time I write this, there are about 58,000 companies listed on the various stock markets around the world.
Question: How can any individual investor possibly know enough about these companies to have any clue which ones are about to go to the moon and which will go bankrupt?
Answer: They can’t.
Question: So, how does an investor who picks individual stocks decide which companies to buy, which companies to sell, and when?
Answer: Whatever companies are grabbing headlines at the moment.
