Ever wondered why some investors sleep soundly while others are up all night? The secret lies in a ‘boring’ investment strategy.
The power of a ‘boring’ strategy
Investing doesn’t need to be thrilling. In fact, the most successful investors often follow a systematic, evidence-based approach. This ‘boring’ method works wonders for several reasons. It provides peace of mind, as a steady, predictable strategy means fewer sleepless nights. With less stress, you have more mental space for problem-solving and goal setting, boosting your creativity. Lower stress levels can also improve both physical and emotional well-being. Additionally, consistent routines build the grit needed for long-term success.
The case for a ‘boring’ portfolio
Think about the most successful investors you know. Are they the ones flaunting their latest wins on social media? Probably not. They’re quietly, systematically building wealth over time. A systematic, evidence-based portfolio has shown an annualised return of 11.24% since 1985. This approach relies on data, not emotions, and focuses on long-term growth rather than quick wins.
- Predictability: Regular strategies minimise emotional mistakes.
- Cost savings: Low-cost systematic investing avoids high fees.
- Stronger returns: Decades of research show that patient investing outperforms high-risk gambles.
The hidden benefits
There are several hidden benefits to a ‘boring’ investment strategy. It frees up mental bandwidth by not constantly checking prices, allowing you to make better decisions by removing emotional bias from your investment choices. “Set and forget” investing gives you more time for family and personal interests, and it helps build sustainable wealth that lasts, avoiding the boom-and-bust cycle.
- Mental bandwidth: Free up mental space by not constantly checking prices.
- Better decisions: Remove emotional bias from your investment choices.
- Time freedom: “Set and forget” investing gives you more time for family and personal interests.
- Sustainable wealth: Build wealth that lasts, avoiding the boom-and-bust cycle.
Making ‘boring’ the new exciting
Despite the clear benefits, many seasoned investors struggle with the concept of ‘boring’ investing. Chasing novelty, such as shiny objects like NFTs, feels new and revolutionary, and social media doesn’t help. The appeal of immediate results can overshadow the value of patience. Events like the 2008 crash left many wary of traditional financial systems, and some still believe in high-cost funds despite the data showing their pitfalls. The financial media doesn’t help either. Headlines about meme stocks and cryptocurrency millionaires create a false narrative about what successful investing looks like. It’s like focusing on lottery winners while ignoring the millions who lost money buying tickets.
So, what can we do to make the boring approach more appealing? To embrace the ‘boring’ mindset, we need to shift perceptions. Imagine a dinner party where the real bragging rights go to the most uneventful portfolio. That’s the kind of appeal we need. Because here’s what real investing success looks like:
- Not checking your portfolio for weeks at a time
- Having no exciting stories about huge wins (or losses)
- Being able to sleep soundly during market volatility
- Spending more time planning your next holiday than analysing stocks
So, here’s the challenge: can you make your investing as unremarkable—and successful—as possible? Start by automating your investments, reducing how often you check your portfolio, ignoring market news and predictions, and celebrating the boring wins.
The best investment strategy should be as predictable as a Swiss train schedule – and just as reliable.
Ready to make your investment strategy as steady and reliable as possible? Let’s talk about how we can help you build a portfolio that supports your long-term goals and gives you peace of mind. Reach out to us today to get started.
