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.
My undergraduate background is in math and science. These studies included the behavioral sciences and human psychology. As part of my work with clients, I enjoy helping people become more aware of their biases regarding finances and investing. I believe that applying academic research leads to more informed advice.
We will explore how evolutionary traits, human behavior, and the human mind potentially work together to influence the way we make decisions. We will look at academic research and various evidence-based investment strategies to help us overcome our emotional biases. We will also discuss the concept of discipline in the investment decision-making process and offer ways to become more disciplined. These strategies may help us overcome our unproductive tendencies. The study of the relationship between our minds and our financial health is the field known as behavioral finance. If you are as curious about these topics as I am, I hope you will join me for this blog.
If you have any questions or suggestions for topics to discuss, please let me know.
Click on the image below to watch a video to see how investors really need to know themselves.
The information provided is for educational purposes only and is not intended to be, and should not be construed as, investment, legal or tax advice. Allodium makes no warranties with regard to the information or results obtained by its use and disclaim any liability arising out of your use of or reliance on the information. It should not be construed as an offer, solicitation or recommendation to make an investment. The information is subject to change and, although based upon information that Allodium considers reliable, is not guaranteed as to accuracy or completeness. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment.