Tag Archives: simplicity

Passivity and simplicity

I have not written in this blog for nearly two months. I have also not read any investment book for the last two months and have become a silent reader in sgfunds.com forum. Busy is one reason, laziness is another. Sometimes I wonder, am I doing enough to track my portfolio? Is there anything I have missed? Have I become complacent after setting up the asset allocation plan, the spreadsheet for tracking the portfolio and the necessary tool for price update?

On the other hand, during the planning phase of my portfolio, there was always the urge to tweak the portfolio. Slice and dice, value tilt, small-cap tilt, collateralized commodity futures… The Internet has too many ideas and too much information that it can do more harm than good. Do you share the same experience?

Well, my experience here is also shared by others. In the thread Simplicity! posted by Taylor Larimore, he quoted experience of investors who were paralyzed and overwhelmed by constant flow of information, and those who were addicted to constant tweaking of portfolio. Following this, Mr Larimore quoted from many famous investors on the simplicity in investing. One of my favourite is:

Richard Young, writer of The Intelligence Report: “If you can’t run your portfolio taking 60 minutes a month, it’s too complicated.”

Oh, also check out the links in the second post of the above thread.

Towards passivity and simplicity. Cheers! 🙂