Introduction
It is such a good statement, I cannot believe that I am the person and I did the silly thing. The statement is the following: People don't like short term pain even if it would result in better long-term results. The topic is about "The ability to live through volatility without changing your investment thought process".
Volatility
They equate short-term volatility with risk. This is irrational; risk means that if you are wrong about a bet you make, you lose money. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss.
But most people just can't see it that way; their brains won't let them. Their panic instinct steps in and shuts down the normal brain function.
I would argue that none of these traits can be learned once a person reaches adulthood. By that time, your potential to be an outstanding investor later in life has already been determined.
It can be honed, but not developed from scratch because it mostly has to do with the way your brain is wired and experiences you have as a child. That doesn't mean financial education and reading and investing experience aren't important.
Those are critical just to get into the game and keep playing. But those things can be copied by anyone.
Actionable Items
I need to look into two concepts and their comparison. One is to equate short-term volatility with risk.
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