Friends,
For eons, people have noted that some suffer from "winter blues." But it wasn't until 1984 that Dr. Norman Rosenthal first formally described and coined the term seasonal affective disorder (SAD).
While many -- myself (Stoffel, here) included -- thought of it as the mental equivalent of a cold, it can actually be much more serious. I should know: in my 30s, I was formally diagnosed with SAD.
During these episodes, I would tell my wife that I could not possibly remember a time when I felt happy, energized, or hopeful. But then, I started taking this weekly "happiness" test.
Sure, I took it during those down times. But I also took it when times were good, when they were challenging, and everything in between. I made sure that when I was taking these tests, I was being as brutally honest as possible. And for the past eight years, I've recorded every one of those scores.
What I now know beyond a shadow of a doubt:
- Most times, I feel "above average"
- Down times are unavoidable, but they never last forever.
Now, if/when SAD hits, I know in my bones that the story in my head ("I have always felt down, I will always feel down") is patently not true. That doesn't mean it's enjoyable -- it just means I'm able to view it more objectively. Ironically, that usually leads to an earlier lifting of symptoms.
The analogy to investing is clear.
Everyone knows the Buffett adage: "Be greedy when others are fearful, and fearful when others are greedy." But no one can accurately imagine how they'd act when the thing making others fearful (war, pandemics, depression) hits.
It's like imagining that finishing a nursery has you prepared for parenthood. Unless you intentionally deprive yourself of sleep for months on end, there's no way to know what the experience will actually be like.
This is why journaling while you invest can be so important. When we get in the habit of writing down why we're excited (or not) about a stock, what we think will happen in the future, and what would cause us to sell, it's like we're taking the test.
The point isn't to be right every time. In fact, that would be terrible. The point is to come to terms with our blind spots, our inability to appreciate how truly unpredictable the future is.
Over the long run, when we do that, we get to know ourselves better. And the better we know ourselves, the higher the quality of our decisions...in investing, and in life
Wishing you investing success,
|
|
Brian Feroldi, Brian Stoffel, & Brian Withers
Long-Term Mindset
β
P.S. It's Official, we are splitting up our YouTube Channel. Brian Stoffel is starting a new channel that will cover earnings, his portfolio moves, and more. Subscribe to his new channel by clicking here.
|
β