Good morning, good afternoon, good evening. This is Jonathan Satovsky of Satovsky Asset Management. On this day of seeking Wisdom, Wealth, and Wellness, I want to do a quick book review.
I’m only a short bit into the book, but Richer, Wiser, Happier — excellent book. Recommend it for anyone who’s an investor who thinks about a lifetime of making decisions around investing. Only a little way through it and it reminded me of a couple concepts that reinforce the process of helping others. If you learn something, you share to be able to uplift people to enrich their lives. One thing I’ll share is the common thread that seems to resonate with me: is one, don’t try to time the markets. Just sit there for a long period of time and you’ll do fine. Don’t try to outsmart everyone.
That being said, the advantage that most people generate, if you’re an investor, the advantage is to lean away from the herd. The idea of buying low and selling high or buying at maximum pessimism and selling at euphoria, those kinds of things. Well, generally as we try to help people for a lifetime, our simple principle is to try to keep it simple and control the controllables. There are some things that are advantages, that are advantages academically, mathematically, structurally, process-wise. It’s just leaning, leaning, even marginally to get a marginal advantage. If you get a 1, 2% advantage over a number of years, it’s a massive advantage leaning on small, cheap, and profitable companies.
And yeah, you can do it more concentrated like to buy four companies instead of 400. And certainly, if you own four, you can make a massive impact much larger, but you can do plenty well with a diversified portfolio if you lean on an ideology and a philosophy and a process that you can stick to for a lifetime. Easy to say, harder to do because the world is one thing constant, change. So, prepare to change and maintain your equanimity, your faith, and donate 10% to others and watch your world flourish.
Have a great day.
