I Like Mondays

Get up, work out, prepare breakfast, do the weekly haircut (yes, really), shower, wake up the kids. What a way to start the week! But don't think this comes easily to me – because it doesn't! Getting up at 5 a.m. to work out is a massive effort.

However, studies show that tackling unpleasant or challenging tasks helps us achieve long-term goals. Why? Because we’re training the right parts of the brain. [1] The same principle applies to investing, which brings me to my favorite topic. 

Recently, a client asked me whether my mantra of “long-termism” is just fancy talk for “buy and hold”. You know, buy a stock, pop a sleeping pill, and ignore your portfolio, as stock market legend and author André Kostolany (1906-1999) once put it. But no, that's not what I mean – just like living a long, healthy life doesn’t mean lying on the couch all day. 

If I hold a stock for years, possibly decades, it’s not because I’m on autopilot. On the contrary, constant activity enables thoughtful inactivity. I’m continually reviewing and confirming the original investment thesis. 

Shouting it out into the world

For the stocks we own, this means staying engaged: skimming news about individual companies, eagerly awaiting quarterly results, and analyzing every detail. What is management saying? Did the CEO give an interview? I’m all ears. The controlling shareholder increased their position – why now? Did I miss something or is there more to understand?

Long-term investing is dynamic and exciting. Lucky are those who get to do it day in, day out – and even get paid for it. But not everyone feels the same. If they did, there’d probably be more people shouting it from the rooftops, just like I do. 

[1] The anterior mid-cingulate cortex (aMCC) plays a crucial role in willpower and motivation. This part of the brain grows stronger when we do things we’d rather not do. More on that here.