I dislike Quarterly Statements and You should too!

May 23, 2024

The majority of you probably look at your investments once a quarter, when the quarterly statements arrive. I dislike those quarterly statements... and YOU should too!

Quarterly statements make us myopic

Myopic means Short Sighted

How much you started with

How much you ended with

Over ONE Quarter.

Is this helpful?

QUARTERLY STATEMENTS CAUSE US TO ANCHOR

Up $50,000 over one quarter?

Up 8% over one quarter?

Finally hit $1mm dollars in your investment account after a good quarter?

What is the expectation the following quarter?

To repeat or exceed that... and if it doesn't happen... you become sad.

LOOK AT THE ROLLERCOASTER OF EMOTION OVER THE PAST 3 YEARS... ISOLATED TO EACH QUARTER

Q1 2020 -19.6%

Q2 2020 20.54%

Q3 2020 8.93%

Q4 2020 12.15%

Q1 2021 6.17%

Q2 2021 8.55%

Q3 2021 0.58%

Q4 2021 11.03%

Q1 2022 -4.6%

Q2 2022 -16.1%

Q3 2022 -4.88%

Q4 2022 7.56%

WHAT ABOUT THE ANNUALIZED RETURN OVER THOSE 3 YEARS (2020-2022)

2020 - 2022 7.6%

What if I add on the growth from 2019

2019 - 2022 13.18%

THERE IS A REASON PEOPLE LIKE "PRIVATE" INVESTING

Well... there are a lot of reasons.

But there is one reason in particular, that most might not even recognize.

Despite many private investments likely being MORE RISKY, many people don't see it that way.

Why?

YOU ARE NOT TOLD EVERY DAY WHAT THE VALUE IS.

You are not told because you can't be told because it's a private investment that is not publicly traded. Less liquidity is often equated with more stability and less risk... but this is only true behaviorally, not in reality.

TREAT YOUR PUBLIC INVESTMENTS LIKE PRIVATE INVESTMENTS

Put them out of your mind (as if they were illiquid)
Remain optimistic that one day it will be worth much more

Sources & Disclosures found in the video link on Youtube