Welcome to the Disciplined Investor Blog!
"The investor’s chief problem—and his worst enemy—is likely to be himself. In the end, how your investments behave is much less important than how you behave.”
— Benjamin Graham
Welcome to The Disciplined Investor blog! I have always been intrigued by how the human mind works and what drives our decision-making. Some of the behavioral traits that have helped us survive as a species do not serve us well in the modern world. This concept also applies to our investment choices. We retreat from pain (sell when the market is down) or follow the herd (if everyone else is buying this, I should too). However, these instincts often do not lead to sound financial decisions. The ways that we are wired may at times drive us to make poor investment decisions. Avoiding pain makes a lot of sense when we are too close to fire. But what if we get a similar feeling when the market drops? When our mind screams “get out of here,” how do we understand that pulling out when the market goes down (to avoid pain) may not be in our best interest? These are some of the questions that we will look at in this blog.