No one needs advanced investing

I watched a conversation today with Charlie Munger talking about the ideal way to invest:

Find a great investment and sit on your ass for 40 years

I think about this a lot lately, most of what I do is buy and hold forever. Transactional cost and complexity makes investing both more expensive and more difficult which means the investor needs to really beat market average returns to make it worth their time

There are a few reasons why people muck this up. The main reason I think is pure boredom, people just want to tinker with stuff. Another is emotions, they buy into things due to excitement and sell due to fear

I like real estate, I don’t really like the stock market, but the approach is the same. Buy a good deal and sit on it, or DCA the S&P.

I no longer think I can be useful to anyone talking about advanced investing strategies or macroeconomics nor do I think there is really very much value in knowing these things. If you live below your means and stick the excesses into an investments that earn 8-10% and never have to think about them again, the likelihood that you become impressively wealthy is 100%. I think for 99.9% of people the real problem is sticking to a plan and finding something productive to do with their time as the plan works itself out.

For this, I do imagine there are ways for me to be useful to people

does this resonate with anyone? The boredom of the wealth building process?

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The Ascentic

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