Focus on the Things You Can Control
Happy New Year!
The start of the year is the perfect time to prioritize both personal and financial well-being. While physical health often takes center stage in New Year's resolutions, financial fitness deserves equal attention.
Investing is hard. Making good decisions is hard. Having the discipline to make good decisions about investing — very hard to do consistently.
So this year, rather than write another boring forecasting letter, I challenge you to redirect that anxious energy you feel over things you cannot control into actionable behavior that you can.
Things you cannot control:
- What the market is going to do
- Who the President is
Things you can control:
- Setting realistic savings targets
- Reducing debt
- Avoiding emotional errors
- Minimizing fees
- Optimizing your taxes
- Actually doing something with the cash sitting in your bank
The reason those who stay invested are rewarded is exactly because it is difficult to do so. When investors exit due to short-term concerns, they create opportunities for disciplined investors to buy at attractive prices.
James Clear, bestselling author of "Atomic Habits":
"Your habits are often a byproduct of convenience. Humans are wired to seek the path of least resistance. Make good choices more convenient and bad choices less so. Behavior will improve naturally."
Automate as much about your financial life as you can. The accompanying chart shows how waiting even a few years can have a large impact:
Gold, Nvidia, Bitcoin
Despite the US abandoning the gold standard 50+ years ago, central banks and investors continue to buy it. But gold is just a shiny rock with value only because we collectively agree it has value.
Nvidia (we've owned since September 2021) returned 575% with $140B+ annual revenue.
Bitcoin briefly overtook $100,000 post-election. But like gold, it has no intrinsic value and requires always recruiting new money for price to rise.
Final Note
This month, Radix celebrates its 10th Anniversary. Jess and I manage over $200 million and have operations in three countries. I look forward to the next 10 years!
Gratefully, Amy Hubble
