A sloth’s guide to market survival
“Perhaps we slow investors should adopt a mascot. I suggest the sloth. Hanging upside-down, moving at a few metres a minute, is much like trading infrequently: it saves the costs of doing things more quickly. Sloths take almost two months fully to digest each meal — which is handy, given that they eat mildly toxic leaves that would poison them if absorbed too quickly. Investors are reminded, all too often, that the financial world is lush with toxic get-rich-quick products. A slower approach to finance makes market movements a great deal more digestible.”
USAGOLD note: I have to admit that a sloth-like approach to portfolio design fits my worldview. I have never been much of a trader and I do find that if I buy an investment for the long-term and essentially forget about it, I do much better than the opposite. That’s why I am content with physical gold ownership. My attitude is to buy it, stick it in the safety deposit box and forget about it. The investors I know who take a similar attitude seem to be the happiest, and ultimately, the most successful gold owners. I guess if you believe in it – believe in what it can do for you – you do not need to check on it constantly, fret about it and seek constant validation that you did the right thing by diversifying your holdings. When it comes to investment there are bulls and bears and then, as Tim Hartford points, there are the sloths. Count me among the sloths. . . . .
REPOST from 2/12/2018