Discussing the Laws Of Investing, Part 2

Do you truly know why you make the investment decisions you do? Many of them are based on mainstream beliefs but how much do you know about where they are rooted? Are you following these laws of investing (knowingly or not)? This is part two of that discussion.
Share this episode with a friend:

Today’s Question:

Do you truly know why you make the investment decisions you do? Many of them are based on mainstream beliefs but how much do you know about where they are rooted? Are you following these laws of investing (knowingly or not)? This is part two of that discussion.

Confidence Corner

We’d like to think that there’s a lot of independent thought that goes into our investment decisions but most of what we believe is rooted in behaviors that guide our thinking. 

In the last episode of The Financial Answer, we began that discussion by introducing an article titled “The Laws of Investing” by Morgan Housel. In it are 17 laws (which are really more like guidelines or behaviors) that spark some interesting conversation as we consider the implications.

Part two will focus on the laws 3-6, which hit on a few different topics. Time horizon is a key part of this discussion and investors need to make sure their goals align with time. Many times there becomes a mismatch and the result leads to a lack of success.

Risk will be another factor you’ll hear in this episode. How does it relate to luck? And how does risk rise to the forefront when you least expect it? We’ll explain by using a couple of these laws.

While there are 17 total laws defined by Housel, we hope by covering the top two you’ll be more aware of your own investment behaviors. And join us again next week for more!

Listen to the entire episode to hear more about the “Rules of Investing” or click on the segment below to hear a specific portion of it.

1:14 – “The Laws of Investing” has many topics worth considering based on a number of theories about investing.

2:15 – Law #3: Career realities create a mismatch between cash flow and time horizon.  

4:16 – Law #4: People with different time horizons and different goals want different things from the same asset.

7:16 – Law #5: Luck and risk are the opposite sides of the same coin but we treat them differently.

11:18 – Law #6: The biggest risk is always whatever no one is talking about.  

 

A Point Of Wisdom:

 

Related Content:

Laws of Investing PDF

 

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit – Learn More About Our Firm

 

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend:

EXPLORE MORE EPISODES

Should An Advisor Tailor A Plan To Fit Your Personality? (Part 2)

As a continuation of our last podcast episode, we’re jumping back in to discuss some more financial personality types in today’s show. Knowing your personality type and tendencies can help you be more successful and aware of your strengths and weaknesses when it comes to financial planning. The first four personalities we talked about in the previous podcast were the victim, the over-analyzer, the DIY-er, and the ostrich. On today’s show, we discuss the next four common financial personalities.

Listen Now »

Should Your Advisor Tailor A Plan To Fit Your Personality? (Part 1)

Each person has a different and unique personality. It’s part of what makes you, you! So, when it comes to your financial plan, should a financial advisor tailor the plan for your personality? On today’s show we cover part one of the different personalities to see which one you might relate to most and how an advisor can cater to that.

Listen Now »

What’s Your Biggest Financial Fear?

Everybody has fears, so we talk about some of the biggest financial fears people face. Sometimes acknowledging the fear is the best place to start. Alongside an advisor, you can strategize how to address these fears and put your mind at ease.

Listen Now »

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

SUBSCRIBE