I heard something on the Rational Reminder podcast that really stuck with me: trust plays a much bigger role in investing than we probably realize. We always hear that one of the keys to investing is staying invested. But how do you stay invested when you donāt actually trust what you own? When I started investing, I bought things like Enbridge, Telus, REITs and eventually covered call ETFs. A lot of those decisions were influenced by what I was seeing on social media. I donāt necessarily think thatās a bad thing because social media helped get me investing in the first place. The problem was that I didnāt really understand WHY I owned those investments. I hadnāt developed the knowledge or conviction to trust them when things werenāt going well. And I think thatās when trust really matters. Every investment or strategy will eventually give you a reason to question it. Markets fall, strategies underperform and thereās always someone telling you thereās something better. The same idea applies to financial advice. If someone is helping manage your life savings, understanding how theyāre compensated, what theyāre doing and trusting the advice youāre receiving matters too. Maybe thatās part of the reason some people eventually move toward DIY investing. Iāve changed my portfolio a lot over the last three years, but perhaps the biggest change isnāt what I own. Itās understanding WHY I own it. I donāt expect my investments to always outperform. But today I understand what Iām invested in and why. And that makes it a lot easier to stay invested when things arenāt going well. Maybe the question isnāt just, āWhat should I invest in?ā Itās, āDo I understand what I own well enough to trust it?ā
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Clantosa @clantosa Ā· 5h
I always start with the why then develop my strategy to achieve that goal. Every single dollar I own has a specific why to it when it gets invested and 100% of my money is at work with this why. I don't own a single dollar just sitting there idle. It all has a why
