The time you spend on investments can be divided into 3 categories: Data, Options & Decisions.
Collecting data on investment options is where most people, including myself, spend most of their time on.
Reading the Wall Street Journal or taking in a company’s latest earnings would fall into this category.
What are the options you have about where you put your money. Stocks, bonds, real estate? India, Morocco, post-Brexit Britain?
The wealthier you are, the more options you have, and the harder this category gets.
Reading a book on asset allocation or speaking to your friendly neighbourhood wealth manager about new trends would be examples.
Ideally we would spend quite a lot of time on decision making - creating investment checklists or analysing our past mistakes to learn from them. In reality most of us don’t spend enough time on improving decision making.
Which of the three categories do you spend most of your time on? Which one do you need to spend more time on?