I noticed that even though I may not be as optimized in the matter of investments as others (hi, Wei Dai!), the basic rationality principles still help a lot. This morning, when I went to invest my usual chunk of my paycheck, I reflected on my actions and realized that the following principles were helping me (and had helped me in the past) buy stuff that were likely undervalued:
pre-commitment (to a certain fund allocation)
think about it for more than 5 min (to putting in the up front leg work and reading to determine my investing approach)
use the try harder, Luke (repetitively following the investment plan week after week even in bad times; overcoming changes in brokerages and entire financial firms going away)
It’s nice to have dramatic examples of “rationalists should win” from other people. But for me, nothing beats personal experience with even small examples of “winning”.
I noticed that even though I may not be as optimized in the matter of investments as others (hi, Wei Dai!), the basic rationality principles still help a lot. This morning, when I went to invest my usual chunk of my paycheck, I reflected on my actions and realized that the following principles were helping me (and had helped me in the past) buy stuff that were likely undervalued:
pre-commitment (to a certain fund allocation)
think about it for more than 5 min (to putting in the up front leg work and reading to determine my investing approach)
use the try harder, Luke (repetitively following the investment plan week after week even in bad times; overcoming changes in brokerages and entire financial firms going away)
It’s nice to have dramatic examples of “rationalists should win” from other people. But for me, nothing beats personal experience with even small examples of “winning”.