The Value of Feeling Foolish

“Oh, I’m so stupid!” my nine-year-old daughter looks skeptically at her drawing. “Why?” I ask. “Because I drew it wrong. The girl is floating in the air instead of doing the cartwheel on the ground.” I’m relieved. And I mention that I, too, often feel stupid, and that it’s perfectly normal. Then comes the question that really makes me think: “When was the last time you felt stupid?”

Those are the rare moments when we parents draw on our life experience. We pause to consider whether it even makes sense to feel stupid. After all, no one is perfect. And maybe there’s no need to fight that feeling at all. Every emotion serves a purpose. In this case, it’s probably a gentle nudge to improve, or to protect ourselves from failure.

Opportunity and Discipline

Every investor needs to brace for a whole range of uncomfortable emotions. You can feel uneasy because you expect a market drop, or because you’re right in the middle of one. You bought too early, sold too early, or didn’t buy at all while everything was going up.

The beauty, or the trap, lies in our selective perception. We come across countless “I could buy that” moments. Rarely do we act on them. But when one of those missed opportunities suddenly takes off, we vividly remember that “almost bought” and feel the sting of having missed out.

“I will miss opportunities,” and “I can’t be in on everything” should be standard phrases for anyone active in the market. As well as: “Sometimes, I’ll make mistakes.”
The key is to stick to your own discipline and keep growing.

Burden and Stability

Anyone who carries responsibility for other people’s wealth knows how good it feels to share that burden across several shoulders. A clear investment philosophy provides structure and reassurance. It’s the framework within which proven methods can unfold. And within those boundaries, there’s still plenty of room for creativity and progress.

You’ll still feel stupid every now and then. It’s probably just part of investing. And, most likely, part of life itself – just like gathering experience and learning from it.