Few things have more of an impact on your life and career than your ability to zero in on what matters most. To sift the essential from the inessential.
While we can all learn and improve our understanding of something, the constant search for what we don’t have and what we’re missing is also the natural response of someone who doesn’t truly understand what matters and what doesn’t.
The worst investors I know are focused on every financial news article, blog, or commentary. Glued to their screen they look for some esoteric detail that others have missed.
And because they are looking, they will eventually find something. Their brain convinces them that all that effort paid off and they overvalue the new information, whereas 99.9% of the time that new bit of information doesn’t even matter.
They’ve lost the forest for the tree.
On the other hand, the best investors I know focus only on the few variables that truly matter and focus on monitoring those. They aim to be simple, effective & efficient.
They train their minds to solely focus on understanding basic, timeless, general principles of the world and use them to help filter people, ideas and projects.
“We have a passion for keeping things simple.” — Charlie Munger