Author: Buddy Reisinger
Clients and friends of Hill Investment Group will recognize the story behind “The Paradox Of The Herd” written by John Jennings because they are living it every day that they are Taking the Long View. John is the President and Chief Strategist of St. Louis Trust & Family Office, author of the blog Interesting Fact of the Day and forthcoming book titled The Uncertainty Solution: How to Invest with Confidence in the Face of the Unknown, and good friend of our firm.
The brief post discusses the emotional rollercoaster that those who invest differently than “the herd” ride, even though their rational selves know that doing so has a good chance of leading to higher expected long-term returns.
The good news is: You’re not alone. Everyone at Hill Investment Group is riding the same roller coaster as our clients because we invest our money the same way. (N.B. Everyone has their own asset allocation.)
As HIG’s “client concierge,” I’m often asked about what books I would recommend for younger investors or those new to investing. Two obvious ones have been written about here before: The Psychology of Money by Morgan Housel and Odds On by Matt Hall.
As a concierge, though, after answering the question initially asked, I like to add to an important question that may not have been asked. In this case, “What book would you recommend to my 20-something (child, grandchild, niece, nephew, godchild, etc.) about life and career?” The title that tops my short list is unequivocally, The Defining Decade: Why your twenties matter and how to make the most of them now, by Meg Jay, Ph. D.
While the clear and direct audience is the 20-something, parents, grandparents, and others can also benefit from reading the title. Meg Jay provides an outstanding framework to hold productive conversations with anyone, especially twenty-somethings, based on her years as a clinical psychologist specializing in adult development. Not surprisingly, for our regular readers, Dr. Jay brings plenty of data and evidence along with her anecdotes.
As a parent of three kids in their twenties, I thought it was a great time to revisit this title myself. Fortunately, my wife, Jeana, encouraged our kids to read the book while in high school or college. As all three embark on new careers or career changes, I’m forever grateful to her for discovering this title years ago. Notably, an “updated” 2021 edition provides additional data and evidence since the 2012 original publication.
If you would like to receive a complimentary copy of the book or discuss the topic further, call me at 855-414-5500.
As many investors scratch their heads about the current economy and global market conditions, some may question their long-term investment plan and the relevance of “taking the long view.” Frankly, that’s human nature. That’s our cave-person, fight-or-flight genetics kicking in. Totally expected, as are our current market conditions when put into context. While the following is a slightly longer read than usual, the payoff for reading (and thinking about the contents) are worth it. Enjoy the analogy that ties together: volatility, bananafish, and your portfolio. If you’d like to discuss the article further, simply call the office at 855-414-5500 or schedule time with us via this link.