Five Investing Powers · Collaborative Fund

Two truths:

1. Every asset goes through temporary out-of-favour periods.
2. The world continues to change, and some things will fall permanently out of favour. Investing strategies that have worked for decades will stop. Industries will go through typical cycles, then they die.

While patience is vital in investing, you should not use it blindly in every situation. While some behaviours never change, the composition of the economy does.

It is therefore essential not to mind when your investments hurt you at times.

• Losing money can make you gloomy.
• Your investment success may not have come solely from skill.
• There will be doubt among your investors, co-workers, spouse, friends, and self during underperformance.
• Realising all the risks you never considered can make you miserable.

A rare skill is to align your peak-wealth years with a generational collapse in interest rates, the Fed becoming comfortable with quantitative easing, and falling marginal tax rates.

Also, the ability to understand the historical context of what it was like in other times will help you appreciate what's possible.