Our success in investing lies in understanding the difference between things we can control and the things we can’t.

We all know that markets correct or fall. We can never control that, but we can control how we choose to ACT (and not REACT).

As we enter 2022, we should expect the following:

1. There will be some event in the world that will surprise us.
2. At some point of time, you might feel like selling or waiting for a correction to invest. In short, you might feel like listening to the noise or even be injected with Expertitis (listening to bullshitters and financial pornographers).

As a wise investor however, you have embraced volatility rather you were waiting for it to happen (my post “Amor Fati Volatility” is about why you should embrace volatility).

Thus, you will not abandon your investment strategy and run away. In case you have liquidity, you will invest without waiting for corrections. If you don’t have additional long-term capital, you will simply say “Oh, you are here. You came sooner than I thought you would”, and then let compounding do its job.

There is a wonderful quote by Seneca that is super relevant to investing: “We suffer more in imagination than in reality.” Isn’t this what we have witnessed in 2020 and 2021?

2022 is going to be no different.

Wise Investors know this Fundamental Truth and thus chose to focus on things they can control and the things that truly matter.

What about you?