“The challenge in life is knowing what’s next.”– Walter Schloss.
Quick edit: Calibration is not a word often associated with equity investing. Yet, calibration remains the essential tool in every serious investor’s toolkit. Knowing what to buy is one thing. Many investors know their winning ideas quite well. Yet, they make a mess of the winning idea in the way they execute their decisions to buy and sell. Calibration of the investment mind is what ensures that investments are executed with precise choices, prescient decisions and patient watch. The three things sound so simple and yet greatly test investors routinely. Investors struggle to match their intent with actions. This happens repetitively despite knowing past follies only too well. Calibration help to make one’s investing less fallible to oft-repeated mistakes. One can’t altogether avoid making mistakes. One can only reduce their numbers and the magnitude. Calibration effectively normalizes investment errors. Acceptance and moving on happens seamlessly because of the learning’s from calibrated actions. Investors who believe in calibration learn to move on from mistakes and keep their mistakes in their subconscious. This helps them err less frequently and certainly not repeat them. Investing becomes much less of a strain because one knows he can respond swiftly to situations without the burden of regret. There clearly is no place for excitement in the life of an investor who believes in calibration. To him, investing is a clinical job.
Investment Strategy: Board the equity omnibus when it slows down.