Return on Luck in Investing
Luck is often mentioned in investing, but I believe you create your own luck. The more you learn, act, and put yourself out there, the luckier you get. This is called Return on Luck (ROL) – benefiting more from the luck you get.
Traits for High ROL in Investing
1. Adaptability
Pivot quickly
Follow new information
Adapt to market changes
Personal Example: I started with individual stocks, then shifted to dividend stocks. Now, I focus on ETFs, Bitcoin, and Real Estate. This adaptability helped me navigate market changes effectively.
2. Bias for Action
Create opportunities
Generate data through action
Invest regularly
Personal Example: Regularly investing and analyzing results helped me refine my strategies and improve returns over time.
3. Grit & Resilience
Get back up after setbacks
Learn from mistakes
Persist through downturns
Personal Example: Market downturns taught me resilience. By staying invested and learning from mistakes, I've grown stronger and wiser.
4. Ownership
Control what you can
Capitalize on events
Make informed decisions
Personal Example: Taking charge of my investment journey, I've made informed decisions that align with my goals and risk tolerance.
Investing isn't about waiting for the right moment; it's about creating it. The more you prepare and position yourself, the higher your Return on Luck will be.
Cheers,
Kai
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