Updated: Oct 2, 2019
Before answering this seemingly obvious question, let's re-frame it to flesh out the truth.
Can you actually beat Tiger Woods in eighteen holes? Or, can you actually lap Usain Bolt in a 100 meter sprint? Most likely not, and there's no shame in that, right? I bet if you even came close to beating Tiger or Usain they might call you an elite professional, perhaps even offer to put a swoosh on your contract which would be a major accomplishment.
Now, what if we asked...can the market actually be beat? The answer of course is yes. Because "the market" is nothing more than a collection of participants attempting to accomplish the same result as any investor -- Profit.
Furthermore, if we begin to evaluate investing from this lens, we can begin to understand that no matter what your aunt, spouse, advisor, institution or governing body says about "beating the market" we know with the utmost clarity that it is a skill game.
It really is that simple -- despite all the noise and info that gets purported in the media.
Let's break it down even further. What is the only way to make money investing? Answer: Buy low and sell high. Some may argue that its possible to invest other people's money and get paid a fee to do that which is true, but to actually capture a profit from the purchase and sale of an asset is what we need to focus on in order to drive this principle home.
Moreover, oddly enough, simplicity often has a tendency to scare people, especially investors. Think of it this way. What is the only way to lose weight? By burning more calories than your body consumes. Simple, right? Yet, there are millions, perhaps billions of pills, diets, techniques, strategies (make that trillions) available in the market place. Why? Because secretly we all want the magic elixir that is going to shorten the pain of expanding our thinking in order to deal with the perceived pain of change in the future.
Interestingly enough, its not our fault as humans BUT its still our responsibility, which ultimately is the only factor that matters. In other words, if you can't grasp that "new to you" isn't the problem, than the grim reaper of apathy will destroy your potential to evolve. And, the most amazing insight the market articulates to its participants (aka investors) is that if you are unwilling to remain open to where it wants to go then you will perish.
Put simply, someone will take your lunch money and their won't be a hall monitor to reclaim.
If this sounds harsh to you, good. Its not until we begin to deconstruct our thinking with more precise questions do we actually start to get more accurate answers.
That said, greater clarity in anything, ultimately means more opportunities to choose from. Wouldn't it be more enjoyable to approach investing with a real edge as opposed to getting filtered information by someone you think knows better than you?
Don't take my word for it or judge me based upon a single qualification on a dead resume, or something I accomplished in college. The truth is, if a so-called professional can't show you in real-time where a particular stock or market is headed, then they are guessing (and sadly most are because they have mastered a skill set in sales, relation building, or just a slick haircut, as opposed to reading the markets which can take a lifetime to develop).
We don't guess at Principles and neither should you, especially since it's your money. Remember, no one cares more about your hard-earned savings than you do. Isn't it time to invest in your investing?
Caveat, here comes the hard sell -- If you're ready to stop guessing and take your knowledge to the next level, then lets see if there's a fit by setting up a quick call by emailing Wes@Principles1.com
Or just keep making the same mistakes so the pros can eat your lunch. Either way --> It's Your Time, Your Money and Ultimately Your Choice.
We wish you the best on your journey to becoming a more opportunistic investor!