At
the start of our investment journey, we tend to get really enthusiastic. This
motivation is useful in helping us learn basic concepts quickly. This is the
point in which 80% of the knowledge can be learnt in 20% of the time – A common
80/20 rule.
As we repeat
the same investment approach over and over again, our learning starts to “stall”.
It is human to want to shift our attention to other investment approaches in
order to get back the “ growth excitement”.
What many
failed to realise is that after the “stall”, there will be an inflection point that
will drive our learning curve back up again. This would also enable us to gain
deep proficiency.
This was well summarised by the “Bipolar Learning Graph” from Timothy Ferris in “The 4-Hour Chef” (This is an affiliate link. See disclosure below.). It was interesting how Tim explains the use of Warren Buffett's margin of safety concept to design "bullet-proof recipes" as well as his methodologies to learning anything.
This was well summarised by the “Bipolar Learning Graph” from Timothy Ferris in “The 4-Hour Chef” (This is an affiliate link. See disclosure below.). It was interesting how Tim explains the use of Warren Buffett's margin of safety concept to design "bullet-proof recipes" as well as his methodologies to learning anything.
I
firmly believed in staying FOCUS before and during the "stall" in order to break out and gain deep proficiency in our investment skills.
Focus has been crucial throughout my life. During secondary school, I was initially ranked
last among my cohort for chess. Even though I set the
record for losing the most number of consecutive matches, I persevered to improve my skills. This enabled me to become the best player within 2
years. I went on to repeat the same formula in other aspects of my
life.
Our family finance journey is right before the inflection point now. In my earlier post, we shared our goal of achieving family finance freedom. Besides our family finance habits, we are sticking closely to our investment approaches that have helped to achieve fairly reasonable gains while building up new skills sets. Boring yes, but focus we must :)
GoHuat
Related Post
4. Can investment help us to keep our emotions in check? Yes it can!
Disclosure: The link for "The 4-Hour Chef " is an affiliate link. At no additional cost to you, I will earn a commission if you click through and make a purchase.
Disclosure: The link for "The 4-Hour Chef " is an affiliate link. At no additional cost to you, I will earn a commission if you click through and make a purchase.
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