Warren Buffett's investment philosophy boils down to doing almost nothing. Buy a diversified portfolio and leave it alone for decades. The biggest mistake investors make is trading too much, chasing returns instead of sitting still.
Stocks down, bonds up. This happens. This is what markets do. What should you do with that information? Nothing. You should do nothing with it. Right? You're not trying to time the markets. This is not how you make money. It's all about time in the market, not timing the market. So it's okay to have a set it and forget it portfolio and look at it every few weeks or every few months or whatever. That's perfectly fine. It's a totally reasonable way to invest. And the beautiful thing about it is it helps perfect prevent a lot of behavioral errors. Right? People who watch the markets too often are much more likely to do damage than good. I think it was Warren Buffett that said the best attitude toward your investments is benign neglect bordering on sloth. Being lazy in this thing is counterintuitively beneficial to your money. Activity is not rewarded when it comes to investing.
Physician Takes a Youth Sports Team to the State Championship - MtoM Podcast #236
