Rational Advisor

“Order and simplification are the first steps toward the mastery of a subject.”
— Thomas Mann, Nobel Prize winning novelist

Mastering investments is also about keeping Order and being simple. Too many times we over complicate our investment world. And we do not retain any order, in fact, it’s just a jumble of investment ideas.

Order - means having a process, and orderly method of doing something. Knowing where things are supposed to be, and why they are there, and then maintaining that order - also known as rebalancing

Simplification - uncomplicating your portfolio. Too many times we want to over diversfiy something, and continue to tinker with it, by adding this and that. All this leads to is DI-WORSE-IFICATION. Having too many Canadian Funds, all doing the same thing or holding similar investments is not diversification. Simplification means having few investments, knowing what they are, understanding their downsides, and volatility, and holding them for an appropriate length of time for them to work through their process. You don’t have to follow the latest trends, the latest fads. You don’t have to keep on adding to your portfolios.

So, there it is - Order and Simplify

KISS - Keep It Simple, Stupid
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Rational

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