Process Over Performance | Wisdom, Wealth, and Wellness
Process Over Performance | Wisdom, Wealth, and Wellness
Explore the essence of investing beyond mere performance metrics in our latest blog post. Delve into the importance of challenging the bias of hindsight and learn why prioritizing curiosity can help investors navigate the complexities of wealth management with confidence and clarity.
Process over performance.
If you only evaluate the outcome (and we’re talking about the investing landscape) over the process, you may be missing out on something that could be beautiful over time.
What am I talking about?
Hindsight bias is one of the behavioral tendencies that most of us experience. And when you look at this last month, this last quarter, this last year, for the best performer, whether it’s a stock, whether it’s an exchange-traded fund or a mutual fund, or any investment that you may make, and base your future decisions—even though we know past performance is not indicative of future results. But if you make the decision purely on performance, good or bad, if it was a great performance or terrible performance, you’re missing a lot of facts, you’re missing a lot of details, you’re going off of first instinct thinking, rather than digging deeper.
So, pause. Be curious. Be fascinated. Ask questions and dig deeper to understand what you own and why you own it.
What is the logic? What’s good about it? What’s bad about it?
Do this so that whether performance is the best, the worst, or the middle of the road, you are at ease on your path to Wisdom, Wealth, and Wellness.
Have a great day.
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Disclosures
This blog post is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation or offer to buy any securities or interests in any strategy offered by Satovsky Asset Management, LLC (“SAM”). SAM is a registered investment advisor with the Securities and Exchange Commission – for more information see www.adviserinfo.sec.gov. Please remember that different types of investments involve varying degrees of risk, and that past performance is not indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the strategies recommended or undertaken by SAM) will be profitable. Market index information shown herein is included to show relative market performance for the periods indicated and not as standards of comparison. The market volatility, liquidity and other characteristics of SAM’s portfolio composition are materially different from the securities listed on public market indices. Market index information was compiled from sources that SAM believes to be reliable. No representation of guarantee is made hereby with respect of the accuracy or completeness or such data. Opinions are as of date of video and are subject to change. A copy of SAM’s current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. SAM undertakes no duty to update information presented herein.
Further Reading
Jonathan Satovsky Interviews Rabbi Simon Jacobson
Always on the run
Learning something new
