I am about to make a statement that some investors might find unbelievable or simply incorrect.

‘Individual investors have a huge advantage over institutional investors.’

What do you think of this statement? Do you believe it and if so, what do you think the advantage is?

The biggest advantage individual investors have over institutional ones is time.

Their (institutional investors) performances are scrutinized monthly, quarterly and annually. They don’t have the luxury of holding on to investments even if they want to. Most of the time they can’t let compounding work for them. Performance and redemption pressures can cause them to sell even if they don’t want to sell.

We on the other hand have no such pressures. Isn’t this a huge bonus?

All we need to do …

Become owners of a diversified portfolio of big businesses…Let the management team figure out the tactics and what they need to do. We focus on our needs… our behaviour…and just let compounding do its job.

But as we all know this is easier said than done…because becoming and remaining a mindful owner of a diversified portfolio of businesses is super difficult…We tend to get in our own way with our blind spots, biases and behaviour.

Two questions for you…

Are you a mindful owner of a portfolio of big businesses? And

Are you letting compounding do its job for you or are you interrupting it on a regular basis?