What is Really More Important in Investing?

TEOI Exhibit 14
TEOI Exhibit 14

Popular media loves to glorify investors that “beat” the market. Hollywood has made dozens of movies about stock traders that manipulate the market to become insanely rich. Newspapers and news channels tell stories about individuals that found some way (or just got lucky) to make millions of dollars fast through some investment “trick.” You have also, most likely, seen the infomercials of some wacky guy throwing around dollar bills claims to be selling “the secret” to investing that will make you rich fast, and all you have to do is buy a book or DVD set.

Why is it so easy to get caught up in trying to “beat” the market?

It is enticing to be able to get rich fast without having to work much, but that is not how the world works. The capital market works because no one individual can consistently take advantage of the rest to become rich. It is true that people get lucky, or that they appear to know the “trick” to investing, but if you look at them in the long run you will see that it never lasts.

What is more important to you?

Do you invest your money to “beat” the market? Or do you do it to achieve your goals? Would you rather make a large chunk of money now by potentially “beating” the market, or achieve your retirement goal and have more than enough to live comfortably the rest of your life and give your family a sense of security?

Knowing our priorities helps us to make the right decisions. That is why every individual who invests or is looking to invest his or her money need to ask themselves: What’s more important to me?

Take Action

What are your individual goals? Take the time and grab a piece of paper, or use a writing application on your computer, and write down 2-3 of your goals. By doing so you will better understand what is more important to you.