Tuesday, April 20, 2021

The impact of compounding

Some investors have a practice of checking their portfolio multiple times per day or at least on a daily basis. If you are a true long-term investor, examine your portfolio every now and then is a waste of time. On the contrary, it will stifle growth as your previous biases begin to influence your portfolio.

Furthermore, if you watch every day, you will see no significant changes. It's as though we see our own reflection in the mirror every day. Do we notice any differences? However, significant developments have occurred over the last decade. Although change occurs on a daily basis, we can only see it over time. This also applies to our portfolio.

Essentially, it is your financial advisor's responsibility, not yours, to oversee your portfolio. It is totally acceptable to maintain track of investments once every six months or once a year. Beyond that, you will kill your investment growth, for sure!




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