Times Change. Decisions Must Too

We have been moving to an aprtment and time and enerrgy have been short. Priorities I suppose. In any case, I found this article to be too useful to not pass on.

Nifty FAANG and Other “One Decision” Investment Strategies

Over the years there have eben many “one decision” stocks or markets. The one decision was just invest, you will never need to sell. Like IBM in the 60s.

The underlying flaw in the one decision scenario is all decisions are contextual. While a perfect decision is possible in a given context, there is no warranty that promises the context will remain the same. When context changes, old decisions become obsolete and conceivably the wrost possible. All decisions should come with a time to revisit. Like a sunset law.

The only constant

Change always happens. Worse yet, change changes. Previously unimportant factors become paramount. People change their attitude. Become uncaring, impatient, or super-involved. Every geneeration has a somewhat different ethos than their predecessors.

The current stock market is not relying on the same variables as it did even a few years ago. You cannot apply old to new and expect the same answer. Recall John  Paul Getty’s admonition, ” In times of great change, experience will be your worst enemey.”

I think we can assess the current conditions as being in the “great change category”

Never make a decision that cannot be undone to better meet new and fundamentally different conditions. Cosmetics don’t matter, but substance does.

I think you will see the point in the article. Will Facebook, Apple, Netflix, Goodle, Amazon and Microsoft be dominant in 2070? Probably not. No Dow Jones Industrial Index original stock is still in the index. Times change. Adaptive people do better than those who hold to the old as forever.

The principle applies to more than investment. Give it some thought. What old decisions hsould be revisited and possibly reinvented?


I help people understand and manage risk and other financial issues. To help them achieve and exceed their goals, I use tax efficiencies and design advantages. The result: more security, more efficient income, larger and more liquid estates. Please be in touch if I can help you. don@moneyfyi.com 705-927-4770

 

2 Comments on “Times Change. Decisions Must Too

  1. Thank you, Don, and the host of your followers. Due to the prevailing situation around the world and the lockdown regulations we had limited access to this platform. We always appreciate your insight and your understanding of the subject and we are truly humbled to be part of your audience. Yes, indeed times change and adaptability is your best friend not only in the investment space but life in general.

    • Good to hear from you again my friend. We are in the process of moving to an apartment. What a disgrace we have been in terms ofcollecting useless stuff. Purge.

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