How to Become a Better Investor: Embracing the Power of Simplicity

15th December 2023 | By Taylor Huff

In our fast-paced, distraction-saturated world, the secret to becoming a better investor—and indeed, human—is surprisingly simple: embrace simplicity.

Think about it. The average person engages with their phone over 2,100 times a day. Each interaction, a potential distraction, can pull us away from thoughtful, well-planned investment decisions. It’s not just about reducing screen time; it’s about cultivating a focused, disciplined mind, essential for successful investing.

Ever visited a hoarder’s home? The chaos, the clutter—it’s overwhelming. This is often how I feel when my browser is drowning in tabs, each screaming for attention. “I’ll read this later,” I tell myself, but it’s just noise, distracting me from what truly matters.

Consider Warren Buffett, one of the most successful investors of all time. He famously said, “My favorite holding period is forever.” This epitomizes the power of simplicity in investment philosophy. It’s not about chasing after every new opportunity, but about committing to solid, proven investments for the long haul.

I have friends, perhaps like some of yours, always chasing the next big investment. Yet, they’re not the ones enjoying the fruits of financial freedom. They’re usually the ones nursing losses. It’s a pattern we all recognize: chasing every shiny new thing rarely leads to long-term success.

The advice I offer is straightforward yet powerful: Turn off the noise. The phone, the constant news cycle—let them go. Make room in your life and your mind. It’s time to focus deeply on the subjects that matter to you, the investment strategies that have proven their worth over time.

You don’t need the latest fad; you need a commitment to what’s already known to work. In investing, as in life, the newest, shiniest object isn’t always a ticket to success. Often, it’s the tried and true paths that lead us to our financial goals.

So, if I were to distill this down to two essential words, they would be: Simplify. Narrow. These are not just words, but guiding principles. If you have the discipline to adopt them, I promise they will transform you into a better person and investor over the next year.

Written by

Taylor Huff