When opportunity knocks, what do investors do? Most begin to think that the opportunity will get even better. The result: they wait endlessly. A small section believes in not waiting because it does not know when to end the wait. So, accepting ignorance leads this small section to make small incremental investments in ideas that look attractive and favourable. These small incremental actions gradually add up to form their most important investment decisions.
Breaking down large problems into smaller parts is a simple way to solve complex questions that have no ready answers. Simplification is the only solution to address complexity. In investing, this works brilliantly, as smaller decisions are easier to make and simpler to implement.
2023 promises to be a year where investors who follow this approach will win big. Just waiting and doing nothing will not work. What will work is a laddering approach where you build your portfolio step by step.
