In this episode, we delve into the crucial role of mindset in becoming a successful investor.
I chat with Peter Dean, a seasoned investor and coach in my Investment Academy, about what sets top investors apart.
Have you ever wondered how to think like a successful investor? Are you curious to understand the psychological barriers that might be holding you back? Peter shares his insights on maintaining a rational mindset, avoiding emotional pitfalls, and the importance of long-term thinking.
Don't miss out on these invaluable tips to secure your financial future!
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Welcome to the invest like a pro podcast, teaching you diversified
Speaker:investing with a simple set and forget approach to stocks and options, build
Speaker:inflation beating wealth for your future and recurring income for today.
Speaker:And now your host, former JP Morgan, investment manager, Manish Kataria.
Speaker:Hello and welcome back., In this episode, we'll show you how
Speaker:having the right mindset is crucial to your success as an investor.
Speaker:So today I've got a very special guest with us.
Speaker:Peter Dean.
Speaker:Now Peter is a highly successful investor in his own right, and he's also a coach
Speaker:on our investment academy program.
Speaker:so Peter runs the investor mindset class on our program.
Speaker:And actually today's episode, is all about investor mindset, and he's going
Speaker:to explain how important that side is.
Speaker:how we think about investing is really what separates successful
Speaker:investors from the average ones.
Speaker:And that's why I thought, this episode would be really important
Speaker:for us to just get that grounding in terms of how you think.
Speaker:As an investor, and usually, if someone's looking to invest, the first question
Speaker:you might ask is, well, which stocks should I be buying, or, which ETFs
Speaker:or which funds or options or crypto coins, and inside which platforms?
Speaker:Now, all of those things are really important questions.
Speaker:And we absolutely have to cover those off.
Speaker:And and we cover those in our investment academy very, very clearly, we give you
Speaker:all of that information in a clear way.
Speaker:But that's not what we master first.
Speaker:we first focus on how to think like an investor, and that's the critical
Speaker:thing because, that's really what's going to move the needle and help
Speaker:you secure your financial future.
Speaker:That's why, after doing the Investment Academy.
Speaker:So many people leave, as successful lifelong investors.
Speaker:we don't just tell them what to invest in.
Speaker:We train them how to invest in any situation for the long term.
Speaker:And that really comes down to how to think as an investor, which, which
Speaker:Peter is going to explain and go through in a bit more detail with us today.
Speaker:And really that's why people obtain great returns over the long term.
Speaker:If they're able to think.
Speaker:In the proper way and think as an investor, so, I know Peter, you're going
Speaker:to explain a lot more, about, what I've just talked about there by way of an
Speaker:intro, Peter is a successful, multi asset, investor across, different asset classes,
Speaker:different, across property stocks, options, crypto, So, and regular ETFs.
Speaker:Peter also qualified as, an investment coach.
Speaker:as I mentioned, he's a coach on our investment academy.
Speaker:So welcome to the podcast, Peter.
Speaker:I guess two questions.
Speaker:Did I, explain all of the asset classes, you're invested in?
Speaker:Did I miss anything out?
Speaker:No, I think you've got them all.
Speaker:Thank you, Manish.
Speaker:And thanks very much for inviting me to your podcast.
Speaker:Looking forward to it.
Speaker:Great.
Speaker:Okay.
Speaker:So glad we've covered all of that off.
Speaker:So I guess the first question for you, Peter, before you dive into, you
Speaker:know, your content, which is super fascinating by the way, what do you
Speaker:think makes a successful investor?
Speaker:what do you think a, a good investor, how do you think a
Speaker:good investor thinks differently compared to an average investor?
Speaker:Sure.
Speaker:Good, good.
Speaker:Great question.
Speaker:I think one of the, it's an equal balance between having the knowledge.
Speaker:But having the right behaviors and being aware of your behaviors and being as,
Speaker:as, as calm and as rational as you can possibly be, when you're investing.
Speaker:And that isn't always easy.
Speaker:That isn't always easy.
Speaker:So when I, I trained as a financial coach, and one of the things that fascinated me,
Speaker:during that training was understanding how your mind works in relation to money.
Speaker:Because money is a very emotional topic.
Speaker:Really, it's, it's ridden with emotion, good and bad at times.
Speaker:and everybody thinks when they're making investment decisions that they're
Speaker:behaving rationally, nine times out of 10, it's your emotions that are
Speaker:driving that decision rather, rather than your, your, your rational mind.
Speaker:And, I'm trying to explain that it's, everybody knows rationally what to
Speaker:do in terms of managing that money.
Speaker:Okay, you all, you all, everybody knows, we all know that, the
Speaker:secret to being building wealth is.
Speaker:Don't spend everything you earn.
Speaker:Save and invest the difference wisely.
Speaker:There you go.
Speaker:Everybody knows that.
Speaker:All right.
Speaker:That's no rocket science.
Speaker:That's the secret of financial well being.
Speaker:But why don't we all do it?
Speaker:if we all did it, we'd all be successful investors.
Speaker:None of us would have any, any bad debts.
Speaker:we'd all be able to retire early with a great pension,
Speaker:with a great big pension fund.
Speaker:If only, if only, our mind sometimes gets in the way and trips us up.
Speaker:Absolutely.
Speaker:And, and, and that is so critical because when in the day to day sort of action
Speaker:of investing, when we're looking at our portfolios, it's hard to separate the
Speaker:emotion from the rational side of things.
Speaker:and, and also just related to what you said, information is all around us.
Speaker:So we can, you know, if you wanted to learn about stocks and, various
Speaker:other investment vehicles, there's tons of information out there
Speaker:on, on YouTube, everything else.
Speaker:Yeah.
Speaker:But really the key thing is how do you go about implementing that?
Speaker:How do you go about thinking about investing and not just today, but, Around
Speaker:the corner when there are events going on, when there's market volatility, if
Speaker:there's a bit of a, like we saw during COVID, we had a, you know, a crash.
Speaker:What do people think around those times?
Speaker:What is the correct way to think, right?
Speaker:Absolutely.
Speaker:Absolutely.
Speaker:Yeah, absolutely.
Speaker:You need to be aware that sometimes your mind, well, normally, always,
Speaker:your mind will wander and do things you don't want to do, first of all.
Speaker:Okay, it'll be too excited, it'll be too scared.
Speaker:It'll be, it'll be too angular, it'll be frustrated.
Speaker:That's, that's how your mind works.
Speaker:And, and, when we get a chance, Fight or flight.
Speaker:Exactly that.
Speaker:Fight or flight.
Speaker:Exactly that.
Speaker:And, and we'll go into that in a little bit more detail when I show a couple of
Speaker:slides and that's one of the things we need to be aware of, and the last, the
Speaker:worst thing we can do is fight that.
Speaker:We need to be aware of that, understand that it's going on, and
Speaker:develop tactics to let it calm down, to let your mind calm down before
Speaker:you make any investment decisions.
Speaker:Absolutely, absolutely.
Speaker:It's so important.
Speaker:I mean, we were talking about this the other day, and we were talking
Speaker:about, we've had, We had the last significant market crash was during
Speaker:COVID, which is actually about was about five years ago now, right?
Speaker:I look back at that time, and, I was buying around that time,
Speaker:buying some investments, thinking about, picking up some bargains.
Speaker:But actually, if I look back now.
Speaker:I would so love to turn back the clock and just buy up a lot more, right?
Speaker:Because it was, now it looks so obvious that it was Yeah,
Speaker:yeah, yeah, of course it does.
Speaker:it's short term interaction.
Speaker:But if you remember that time, we were all just, running scared.
Speaker:It was that, that whole fear and every instinct in our body was telling us
Speaker:to get out of all of our investments.
Speaker:Exactly.
Speaker:And looking back now, we should have been buying.
Speaker:But you know, all of this comes down to mindset, right?
Speaker:Yeah, absolutely.
Speaker:What you're going to be talking about.
Speaker:Absolutely.
Speaker:Yeah, yeah.
Speaker:Shall I, shall I share a couple of slides?
Speaker:Yeah, let's let's share some information.
Speaker:Now, if you're listening to this on the podcast, obviously, you won't
Speaker:have access to the slides, which Peter is about to share with us.
Speaker:But what we'll do is we'll, we'll put the we'll put the slides and
Speaker:the images into the show notes.
Speaker:So you'll have access to them.
Speaker:those while you're listening in.
Speaker:So yeah, feel free to share some information there, Peter.
Speaker:Okay, so the first, the first point I want to make, and just, just a few slides
Speaker:to talk through here, is that we're not biologically wired to be good with
Speaker:money, or for that matter, investing.
Speaker:And, and the reason why that happens is that our brains were
Speaker:formed millions of years ago.
Speaker:prehistoric man, primitive man, that's where our brains
Speaker:had their, have their genesis.
Speaker:And, life was very, very tough there.
Speaker:They had two things to do, basically, to hunt for food and
Speaker:avoid being hunted for food.
Speaker:And life expectancy was, well, roughly about mid 30s or something like that.
Speaker:So, life was very short.
Speaker:There was no long term future.
Speaker:Everything was very much in the moment.
Speaker:Although their senses had to be primed to danger and been able to fight or flight
Speaker:as you mentioned earlier, and that's how our brains were formed during that time.
Speaker:And because they're the longest, most established part of our brain, that, that
Speaker:is where our prime emotions come from.
Speaker:That primitive man is where our emotions come from.
Speaker:But any decision, not just money, not just investing, but in particular
Speaker:money or investment because they're loaded with emotions.
Speaker:There's a great book called The Chimp Paradox by, by Steve Peters.
Speaker:That goes into this and explains it really well in a really simple way.
Speaker:Steve Peters, some of your listeners may be aware of the name.
Speaker:He was one of the coaches, did some work with the British Olympics team for 2012.
Speaker:And he's done some work with other famous sportsmen since.
Speaker:And he explained that the three main parts of our brain work together.
Speaker:And that they are the frontal part, which is our human part.
Speaker:The limbic.
Speaker:Which is our original chimp part, he refers to it as.
Speaker:So that's, that's the bit that dates right back down to, right, right,
Speaker:way the way back to prehistoric man.
Speaker:And the paratial part, which is the logic part of the computer,
Speaker:where we store information.
Speaker:Where, it's our shortcut to information.
Speaker:It's where we don't have to think about every single thing we do, because we
Speaker:instantly know that that's how to do it.
Speaker:Such as tie our shoelaces, or make a cup of tea, or anything, anything like that.
Speaker:We store all that information.
Speaker:It's, it's, it's instantaneous.
Speaker:now, the, the, the important part to remember about how these paths work
Speaker:together is that your chimp part is five times stronger than your human part.
Speaker:So that's the bit that is, is built in to protect prehistoric man and to, and
Speaker:to make it a successful hunter gatherer.
Speaker:It's, it's very emotional, it's very quick, it's very spontaneous,
Speaker:it's very in the moment.
Speaker:and which can be both good and bad, but the point is that it's instant.
Speaker:It's quick.
Speaker:It's very, very, very emotional.
Speaker:If you try and argue, imagine yourself trying to argue in your mind with that,
Speaker:with the chimp, but you won't win.
Speaker:Your logical part, which is your human brain, it won't win that in the
Speaker:time because the chimp is stronger.
Speaker:Our emotions are stronger than our logic.
Speaker:At this time.
Speaker:So the trick really is to let it calm down.
Speaker:It wears itself out.
Speaker:It can't.
Speaker:It takes up so much energy, so much energy.
Speaker:Imagine when you're frustrated about things or you're angry or
Speaker:you're emotional or you're happy.
Speaker:It uses a lot of energy.
Speaker:So it takes up so much energy from our minds, but eventually it does calm down.
Speaker:So need to be aware when that's happening in an investing context, but
Speaker:also but also in your everyday life.
Speaker:It's useful to have in your everyday life.
Speaker:Let it calm down.
Speaker:How many times have you got involved in an argument, had a blazing row
Speaker:with somebody, only to regret it later and think, that was a bit silly.
Speaker:And of course, it is silly, we don't look back and it's silly, but in the
Speaker:moment, in that time, it's important.
Speaker:And your chimp is getting you to do this.
Speaker:That's really fascinating, Peter, and I guess Just thinking about what you've
Speaker:just been saying, if we apply it to investing, is it, is it fair to say that,
Speaker:emotions get the better of us, right?
Speaker:So when we are looking at, newspaper articles or social media posts, or, when,
Speaker:when people are just fear mongering, et cetera, Is it fair to say, given
Speaker:what you've just said about this, this sort of chimp paradox idea, is
Speaker:it fair to say that actually what we should be doing is, is yes, okay, just,
Speaker:almost ignoring the highly sort of emotional aspects of investing and, and
Speaker:really just focusing on the evidence?
Speaker:Is it, is that fair?
Speaker:fair to just keep it to the evidence and, and keep it
Speaker:rational from that perspective?
Speaker:Yeah, absolutely.
Speaker:keep it to the evidence.
Speaker:Let your, let your human part of your brain do its work.
Speaker:Cause it's, it knows the right thing to do.
Speaker:It's the logical part.
Speaker:It gets, it gets taken over by the chimp part initially, but
Speaker:it knows what to do eventually.
Speaker:Okay.
Speaker:It, it will always know what to do.
Speaker:It knows the right thing to do.
Speaker:Your emotions sometimes.
Speaker:Of course, you do the wrong thing to do.
Speaker:So we can come on to a couple more tips now, but the most important tip at the
Speaker:moment is don't do anything in a hurry.
Speaker:When you're looking to make an investment decision, don't do it in
Speaker:a hurry because it's your emotions that are driving that decision.
Speaker:Probably don't do anything when you're too excited or depressed.
Speaker:So equal way, just don't, just don't make investment decisions.
Speaker:When you're in that frame of mind, calm yourself down.
Speaker:however that works for you, read a book, go for a walk, go to the gym,
Speaker:do something to calm yourself down and get that chimp out of your mind.
Speaker:Get your rational mind working.
Speaker:Have a pause.
Speaker:Before you're actually going to make an investment decision, even if you
Speaker:come to that decision, maybe sleep on it, or maybe just leave it a few hours.
Speaker:Nothing is so urgent.
Speaker:Very little things are so urgent that they won't wait with another, with
Speaker:another little 24 hours to, to, to pause.
Speaker:And then if you come back to it with your rational mind, and you think,
Speaker:yeah, it's still the right decision.
Speaker:More than likely, it is the right decision at that stage.
Speaker:But if you come when you think about it and think, hmm, yeah,
Speaker:maybe it, well, that maybe wasn't, maybe it wasn't the right decision.
Speaker:Yeah, I completely agree with that.
Speaker:And that reminds me of this whole, there's, there's a whole sort of
Speaker:separation between trading and investing.
Speaker:And I'm always reminding people, to, to, to invest and don't trade.
Speaker:And there's a big difference between the two, the trading side.
Speaker:I think, involves, and now you've just talked about this idea.
Speaker:I think it really fully utilizes the chimp side of your brain, right?
Speaker:The trading side.
Speaker:Because you're responding to, to, to things and events
Speaker:and what people are saying.
Speaker:Whereas investing, you're keeping a cool head and you're just.
Speaker:Focusing on what's always worked now, that's not always easy, but you just need
Speaker:to learn how to invest in the right way.
Speaker:But once you've learned how to do that, it's a forever thing, right?
Speaker:And that and that forces you to, or teaches you how to think about what's
Speaker:always worked and the evidence rather than reacting to short term events.
Speaker:Absolutely.
Speaker:Absolutely.
Speaker:let's move on.
Speaker:So, yeah, some concepts that exist in terms of how this can affect you as an
Speaker:investor, that I think would be helpful for the listeners to be aware of.
Speaker:One of the things is that we fear loss more than we value gain.
Speaker:It's a strange concept to, to, to understand, but actually because
Speaker:we've hold, because we have something, because we've already possess it,
Speaker:we're worried about losing it.
Speaker:More than we are about gaining something because we can't
Speaker:really envisage it as well.
Speaker:We haven't, we haven't got it now.
Speaker:That's, that's a concept that works across a number of a number of things.
Speaker:But in an investment context, this can mean sometimes that we
Speaker:make the wrong decisions because if we're sitting on a loss.
Speaker:And it might well be a loss that we'd be better to crystallize.
Speaker:Sometimes, sometimes we hang on to that too much because we
Speaker:don't want to make that loss.
Speaker:Yeah, because we know that our rational minds may know that
Speaker:actually, that's not the right investment for us to be in anymore.
Speaker:It's not the, not every investment we make is always going to be
Speaker:always going to be a winner.
Speaker:We know that we know that they get the, the, the trick of investing is to get
Speaker:more winners than losers and win overall.
Speaker:That's what we do.
Speaker:so sometimes you need to recognize the loss and walk away from it, and,
Speaker:and sometimes almost that's like, it's a bit like admitting defeat.
Speaker:don't get, again, a little bit emotionally, attached to that.
Speaker:Don't get too personally attached to your investments.
Speaker:It's another great treat to keep in mind.
Speaker:so bear that in mind.
Speaker:Yeah.
Speaker:I think just, just to add to that, Peter is, this whole idea of a fear
Speaker:of loss, is sometimes, overtakes.
Speaker:The pleasure from the gain and which is right there just to kind of an
Speaker:example of that is, where I see this, translate into where people don't
Speaker:don't invest and, people hold on to cash for true for far too long.
Speaker:So they hold on to too much cash for too long.
Speaker:Purely from the fear of pain of loss.
Speaker:And actually, when we are investing.
Speaker:All going back to the evidence, right?
Speaker:Going back to the evidence, the evidence suggests that investing, particularly
Speaker:in, in, in stocks has, has made, a very, consistent eight to 12 percent per annum.
Speaker:Obviously we don't make gains every year, but that's.
Speaker:Part of the game that goes with the territory, right?
Speaker:Historically, it's been a very, lucrative asset class, but what
Speaker:people fear is the pain from loss.
Speaker:So, so the, it's almost like a, a sense of security to sit in cash for far too long.
Speaker:And I would say, look, be aware of inflation because anyways, cash is by
Speaker:far the worst asset class out there.
Speaker:So yeah.
Speaker:So this kind of, Just reminded me of that sort of that's a really that's a really
Speaker:good good point manager Absolutely, right and some of that some of that
Speaker:can manifest itself in procrastination So people may be fearful about loss
Speaker:or maybe thinking well, you know
Speaker:There's been big gains in that in that in that particular
Speaker:etf or that particular stock.
Speaker:So, I wish i'd invested 20 20 years ago, whatever and so yeah, maybe maybe
Speaker:you'd have been better there But you haven't got that 10 That might have been
Speaker:the best time to invest the best time to invest for you right now So think
Speaker:about overcoming that fear of loss and actually dipping your toes in logically.
Speaker:and, and, and begin, begin your investment journey, so don't let that hold you back.
Speaker:Totally.
Speaker:And if you're really cautious, pound cost average in because that enables you to,
Speaker:drip feed money in without going all in.
Speaker:Absolutely.
Speaker:another concept, herd mentality, following what everybody else does.
Speaker:we, we can all, we're all guilty of this because, the reason why we do
Speaker:this is that we're social animals.
Speaker:we want to be seen to be in the crowd, doing the same as everyone else.
Speaker:We don't want to stand out.
Speaker:So sometimes we're making decisions that just because everybody else is
Speaker:making, we want to make decisions as well, those decisions as well.
Speaker:Now, it isn't always going to be the right decision.
Speaker:And it certainly isn't always going to be the right decision
Speaker:for your individual circumstances.
Speaker:And so just because everybody else is doing something, it doesn't
Speaker:always make it right at all.
Speaker:Going the other way, there's, there's, there's a concept called confirmation
Speaker:bias, which basically means that we seek to find out information that
Speaker:reinforces our view, and we only look for that information, and we
Speaker:become completely blind to all the information, all the wad of information
Speaker:that actually challenges our view.
Speaker:again, it's a natural, it's reinforcing our, our, our, our self belief that
Speaker:we need to be open to that, and we need to make sure that when we.
Speaker:When we assess something and when we ongoing assess our investments, make
Speaker:sure that we're taking in all all considered points of view as well and
Speaker:not just not just going blindly on our own confirmation bias as well.
Speaker:Yeah, very important.
Speaker:Absolutely.
Speaker:And the last one I just want to talk about briefly on here is, is, is
Speaker:FOMO, the famous fear of missing out, linked heavily to, to herd mentality.
Speaker:the problem with, with, with fear of missing out is that very often
Speaker:you will end up doing things in haste, for the wrong reasons, again,
Speaker:because everybody else is doing it.
Speaker:And moreover, you end up doing it at the wrong time, very wrong time, because when
Speaker:everybody else is going into something.
Speaker:That's usually the time where it might be due some sort of correction.
Speaker:So you can end up buying into a stock or an ETF just because everybody else
Speaker:is buying into it and conversely, selling out at the wrong time when
Speaker:other people are selling out as well.
Speaker:So be consistent in your own investing approach.
Speaker:Don't dive into an investment because of FOMO or out of
Speaker:investment because of FOMO as well.
Speaker:Absolutely.
Speaker:I see that a lot, FOMO, herd mentality, and you, you, you see that and, the one
Speaker:easy way to mitigate that, those biases is to, is to be diversified, right?
Speaker:So there's nothing wrong with playing individual stocks and.
Speaker:Cryptos and, and, and things like that, make sure you're positioned properly.
Speaker:So if, if most of your portfolio is properly diversified, even if you
Speaker:get the herd mentality FOMO wrong slightly, and if you fall for that
Speaker:trap, which you shouldn't, as Peter's mentioned, you should try and think
Speaker:about, not joining that, that crowd.
Speaker:But even if you do, as long as you're properly diversified, it won't be
Speaker:so painful when it goes against you.
Speaker:Yeah.
Speaker:Absolutely.
Speaker:Absolutely.
Speaker:And the last concept I just want to refer to is something called present bias, and
Speaker:that is very much the fact that we are happy, we are happier, happiest living
Speaker:in the now, rather than the future.
Speaker:We find it hard to envisage our future selves.
Speaker:And going back to prehistoric man, that's mainly because that part of our brain was
Speaker:formed, the strongest part of our brain.
Speaker:There wasn't a future self to look forward to, in the sense that there is
Speaker:now, with the life expectancy of mid 30s.
Speaker:Now this goes a long way to explain why people don't maybe start that
Speaker:investment journey, and certainly a long way to explain why people don't
Speaker:save as much for their future self, in particular pensions, as they should do.
Speaker:They know they need to, they know they should, but they don't.
Speaker:Now, of course there's sometimes financial concerns holding that back.
Speaker:As well, we need to live in the moment and spend about,
Speaker:everyday spending taken care of.
Speaker:Nonetheless, if we had a bigger and better appreciation of our future self, we'd be
Speaker:much better longer term investors as well.
Speaker:So long term timeframe is what we always need to think of.
Speaker:We invest for decades, not days.
Speaker:Yeah, totally.
Speaker:And, and that is so important, having that long term horizon is so important.
Speaker:we, I think about Warren Buffett, right?
Speaker:Warren Buffett is, how old is he?
Speaker:94, I think now?
Speaker:Yeah, something like that.
Speaker:And when people ask Warren Buffett what his time horizon
Speaker:is, he says it's forever, right?
Speaker:Because, and the reason for that is because And I think we should all have
Speaker:that same same mindset, because when we're investing, we're not just investing
Speaker:for ourselves, we're investing for our future generations, hopefully, we can
Speaker:pass, pass on assets to generations.
Speaker:And, and really, that and that's why we should be responsible investors, not just
Speaker:for our future security, for for others.
Speaker:around us, I think.
Speaker:And just the final thing on time on long term investing, it reminds me of a story.
Speaker:I don't know if you probably heard it, Peter, it's the fidelity story.
Speaker:And yes, some of the some of our listeners may have heard of it.
Speaker:But and the reason I mentioned this is because it's so important.
Speaker:This Actually, what Peter's saying has huge, real consequences for
Speaker:how well you'll do as an investor.
Speaker:So this Fidelity story was, it's a really famous story.
Speaker:And, so you probably heard of Fidelity, the investment platform.
Speaker:It's a, it's a huge U. S. based investment platform.
Speaker:and, and what it did was, one day it decided some of the marketing
Speaker:executives decided, actually, let's have a look at all of our All of
Speaker:our clients, all of our investors to see how well they've been doing.
Speaker:Let's go through their accounts and let's segment them from the best
Speaker:performing to the least well performing accounts, in terms of investors.
Speaker:So they, I think they split them into five different parts, the best performing
Speaker:second, best performing and, et cetera.
Speaker:So, and they decided, okay, well, let's take this opportunity to contact our best
Speaker:performing investors to let's see if maybe we can extract a few more dollars from
Speaker:them to get more fees out of them So let's Use this as an excuse to give them a call
Speaker:So they did so they contacted the best performing investors and they gave them
Speaker:a call say, to say hey how are you doing?
Speaker:what's the secret etc. So they call them up and and to their surprise They couldn't
Speaker:reach most of these people And and eventually they got through to to their
Speaker:families, the account holders families.
Speaker:And what they found is that a significant percentage of these investors had died.
Speaker:And, and, and they were amazed by that, right?
Speaker:So, so, most of these investors had been around for so long and they'd
Speaker:died and their families had hadn't even looked, to, close down their accounts.
Speaker:And, And then, then they decided to call the second best performing group and they
Speaker:call them up and, and again, to their surprise, this time, they were met with
Speaker:surprise from the other side to say, Oh, I don't have an account with you.
Speaker:And so it turned out that they'd actually forgotten that they'd had an account
Speaker:and really the moral of this story, which the Fidelity, people had found
Speaker:out the moral of this story is that actually the best performing investors.
Speaker:just don't tinker with their portfolios, they'd almost forgotten or, if they died,
Speaker:they can't tinker with their portfolios.
Speaker:Or if they don't know about their accounts, they haven't been able to
Speaker:tinker with their portfolios and which, and the worst performing investors.
Speaker:are the more active investors, by default as a result.
Speaker:So this is all if it completely links into what Peter has been saying about not
Speaker:following the herd, not tinkering with your portfolio investing for the long
Speaker:term, because this stuff really matters.
Speaker:And these fidelity.
Speaker:People actually found the best performing investor groups had,
Speaker:returned something like 18, 19 percent annualized for years and years and years.
Speaker:And imagine that compounded over time is just multiplying your
Speaker:wealth by an amount you wouldn't be able to imagine, right, Peter?
Speaker:Absolutely.
Speaker:And that's so powerfully demonstrates the, the power of long term compounding
Speaker:and being a patient investor.
Speaker:Yeah, investor is the key thing.
Speaker:Absolutely.
Speaker:So some tips what can what now we know that our mind is driving some of
Speaker:our investment behaviors not to our benefit What what can we do about it?
Speaker:As an investor, as you, well, well described at the beginning,
Speaker:Manish, behavior beats knowledge.
Speaker:you can have all the knowledge about how to invest in the world, all the
Speaker:knowledge in the world about how to be a logical investor, but Your success will
Speaker:depend as much if not more on how you understand and manage your behavior and
Speaker:your knowledge, your technical knowledge.
Speaker:think longer term.
Speaker:Invest according to your time scale.
Speaker:Not everybody else's time scale, your time scale, which as we've
Speaker:said should be longer term and perhaps even for that in the case
Speaker:of, in the case of Warren Buffett.
Speaker:Don't make short term decisions, especially in haste, that can
Speaker:lead to mistakes, and undue pressure and undue, performance.
Speaker:Learn to control your emotions.
Speaker:Stop when you're getting emotional.
Speaker:Avoid herd mentality.
Speaker:Avoid social media influences.
Speaker:Don't listen to what these guys say or these girls say.
Speaker:They are, they don't know you.
Speaker:They don't know your circumstances.
Speaker:They don't know your time frame.
Speaker:They don't know what else you've got.
Speaker:They don't know your assets.
Speaker:So how can I make a recommendation for you?
Speaker:yeah, don't listen to 'em.
Speaker:Invariably they're just selling clicks and , trying to get people to view their
Speaker:channels and, and monetize their channels.
Speaker:Social media channels, prioritize not losing money.
Speaker:Stay invested.
Speaker:Stay invested.
Speaker:Don't, don't make rate hasty decisions, let compounding do its long-term work.
Speaker:'cause as we've seen from that fidelity, case Apley demonstrates
Speaker:the fact of long-term consistent patients and compounding.
Speaker:Embrace volatility.
Speaker:yes, it can be scary.
Speaker:Yes, it can seem as though the whole world is against you in terms of investing.
Speaker:yes, it can be really, worrying about your investment going down.
Speaker:That's when, shares are on sale.
Speaker:That's when there's the opportunity for you to dip in a little bit more and,
Speaker:and add rather than, rather than shed.
Speaker:Don't look to, to be worried about volatility.
Speaker:Long term, as we've demonstrated, and as you, as you teach on the, on the,
Speaker:on your investment academy, that is.
Speaker:The markets tend trend upwards long term, there will be dips along
Speaker:the way, there will be dips and of course they will always be dips.
Speaker:These are the volatility, volatility is the price we pay for the rewards
Speaker:without volatility, there's no rewards.
Speaker:And, and we talked about over trading avoid over trading, avoid the
Speaker:temptation to dip in and out avoid the temptation to tinker jump horses,
Speaker:stick to your long term thesis stick to regular investing, be patient.
Speaker:Totally.
Speaker:I love those tips and that that is a perfect summary of, not just
Speaker:investing and and what we talk about all the time, it's a great summary
Speaker:of of what you teach Peter on in your in your excellent mindset class.
Speaker:Peter, as I mentioned earlier, Peter is, an investment coach on, on our
Speaker:investment academy and, Peter provides a fully comprehensive, class around all
Speaker:of this stuff, which we've summarized today, but this is so, so, so important
Speaker:to be a better investor, right.
Speaker:So, so, and, and really, as I said earlier, this stuff comes first, right.
Speaker:Get this right.
Speaker:and everything else will just fall into place.
Speaker:We can learn about.
Speaker:You know the stocks and the ETFs and the funds what to invest in how to invest it
Speaker:in how to save fees how to Create lumps of capital which hmrc will give you if
Speaker:you put money into your pensions properly All the right wrappers all the right
Speaker:platforms options for income Dividends and crypto and all of that good stuff.
Speaker:But this comes first These are the if you let these be your
Speaker:foundations for investing.
Speaker:this will stay with you for life and not just you, your, your, your family and
Speaker:your friends and, and those around you because this is all contagious stuff.
Speaker:So really, really if you do this, if you master all of this, you'll become one of
Speaker:the top 5 percent investors in the world.
Speaker:Yeah.
Speaker:Yeah.
Speaker:I love this stuff.
Speaker:Like it's really helped me as investor without a doubt.
Speaker:every time I hear this stuff and I've heard this a few times from you, Peter,
Speaker:but every time I hear this and talk to you about this, there's more and more
Speaker:light bulbs that go off in my head because we're always learning, right?
Speaker:Doesn't matter how experienced you are, you're always learning that stuff.
Speaker:Yeah, absolutely.
Speaker:So it's, it's so important.
Speaker:As I mentioned, Peter, gives a much more comprehensive sort
Speaker:of class around this stuff.
Speaker:And, and we talk about all of this within our, what we call our investment
Speaker:foundations, which we build upon, all the other stuff comes afterwards, but
Speaker:this is the, these are your foundations, just when you, just like when you.
Speaker:Build a property, a new build property, right?
Speaker:We lay our foundations first, right?
Speaker:And when you're, when you lay your foundations first, that makes for
Speaker:a long lasting, robust portfolio.
Speaker:Your portfolio is not going to be blown down by the wind.
Speaker:In the same way, the foundations help your property to stay upright and to stay
Speaker:robust for decades, if not centuries.
Speaker:So that's been, really fascinating, Peter.
Speaker:Thanks so much for your time and your knowledge and sharing your
Speaker:experience, with us, on this episode.
Speaker:And hopefully that's helped all of our, our listeners, and our viewers as well.
Speaker:And if you want to find out more about the Investment Academy,
Speaker:go, go along to investlikeapro.
Speaker:co.
Speaker:uk.
Speaker:and please give us a follow and subscribe, and hopefully you can
Speaker:check out our other videos, which hopefully should be showing up
Speaker:somewhere on this screen over here.
Speaker:So go and check out our other videos and our other podcast episodes,
Speaker:and I will see you next time.