This was an absolute delight and challenge for the mind!
The line "We have lowered our threshold for patience to accommodate more distractions" stood out to me. It's a reminder to keep prioritising my learner journey no matter how complex it feels. It gets easier with practice. Never a failure, always a lesson.
Question: for someone who for instance goes by the growth investing philosophy and capital preservation, does the choice of a bond fund fit into one philosophy or are the philosophies guiding foundations and the strategy fluid & adaptable?
Thank you Wairimu, I'm glad you found this insightful.
To your question, I'll remind you that philosophies are a set of beliefs that guide your investing decisions. You're very right in referring to them as foundations. That's exactly what they serve as. Strategy then makes your philosophies actionable and that's what guides the distribution of your money across different asset classes (among other things) and I'll cover this in the next explainer. This is followed by your individual investment plan which goes into the "how" of it all. All these can change though as you rightly put it, strategy (and plan) are more fluid & adaptable.
As you learn, look to apply these principles (and keep asking questions) and you will gain lifelong insights as a bonus.
This was an absolute delight and challenge for the mind!
The line "We have lowered our threshold for patience to accommodate more distractions" stood out to me. It's a reminder to keep prioritising my learner journey no matter how complex it feels. It gets easier with practice. Never a failure, always a lesson.
Question: for someone who for instance goes by the growth investing philosophy and capital preservation, does the choice of a bond fund fit into one philosophy or are the philosophies guiding foundations and the strategy fluid & adaptable?
Thank you for this life-saving information!
Thank you Wairimu, I'm glad you found this insightful.
To your question, I'll remind you that philosophies are a set of beliefs that guide your investing decisions. You're very right in referring to them as foundations. That's exactly what they serve as. Strategy then makes your philosophies actionable and that's what guides the distribution of your money across different asset classes (among other things) and I'll cover this in the next explainer. This is followed by your individual investment plan which goes into the "how" of it all. All these can change though as you rightly put it, strategy (and plan) are more fluid & adaptable.
As you learn, look to apply these principles (and keep asking questions) and you will gain lifelong insights as a bonus.