An Attitude of Gratitude: Here’s why this virtue is a must for investors like you!
| From the desk of Miles Everson: Hi! I’m thrilled to talk about another investing insight for today’s “The Independent Investor.” Every Wednesday, I talk about investing in the hopes of helping you attain true financial freedom through this activity. Today, I want to highlight the importance of gratitude and its relevance to your mental state, as well as how this impacts your portfolio. Want to know more? Keep reading below! |
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An Attitude of Gratitude: Here’s why this virtue is a must for investors like you! Paying attention to the markets may feel like second nature, especially if you’re keeping a close look on how your money gets put to work and if there are any opportunities that many have yet to catch on. While there’s nothing wrong with being vigilant, there are times when you need to take a step back from keeping a close eye on the markets so you can sit back, relax, and be grateful. Yes, you got that right—gratefulness has a place in your investing strategy. An Attitude of Gratitude According to Professor Joel Litman , chairman and CEO of Valens Research and Chief Investment Officer of Altimetry Financial Research, being grateful leads to compounded benefits over time.
More importantly, being grateful helps in improving sleep and reducing stress. Sleep is crucial, because lack of it can lead to increased irritability, depressive feelings, and impulsive behaviors. The effects are the same for those who are mentally stressed. Meanwhile, according to the research of psychologists, Dr. Robert A. Emmons and Dr. Michael E. McCullough, those who wrote about things they were grateful for each week were much happier and reported fewer doctor’s visits than those who wrote about things that irritated them instead. The bottom line? Being grateful is beneficial since it leads to less stress and better sleep. … and since better sleep and lower levels of stress are connected to better decision-making and emotional stability, having them is highly beneficial to activities like investing, since this requires clarity of thought and emotional balance. In other words, a well-rested, less stressed investor is much less likely to make rash trading decisions because or she has a better handle on emotions. On that note, these are some of the investing traps you can fall for when you’re unable to regulate your emotions when making investing decisions:
These emotionally-motivated investing traps have cost investors millions and are the same reason why some folks often sell at the bottom of a bear market when they should be buying instead. The same also goes when investors hold on to a stock when they should be selling instead. — Gratitude alone isn’t enough to beat these common investing traps. It takes lots of practice, discipline, and confidence to do so. However, this practice can make a big difference to your mindset and emotional well-being. … and when you’re in a much better headspace and emotional state, you’re much more likely to make better investing decisions. Hope you’ve found this week’s insights interesting and helpful.
Stay tuned for next Wednesday’s The Independent Investor! Where did you spend your money when you were a child? Learn more about how you can book a double with Warren Buffett’s second-ever investment in next week’s article! |
Miles Everson
CEO of MBO Partners and former Global Advisory and Consulting CEO at PwC, Everson has worked with many of the world's largest and most prominent organizations, specializing in executive management. He helps companies balance growth, reduce risk, maximize return, and excel in strategic business priorities.
He is a sought-after public speaker and contributor and has been a case study for success from Harvard Business School.
Everson is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and Minnesota Society of Certified Public Accountants. He graduated from St. Cloud State University with a B.S. in Accounting.
