What If You Focused on Your Desired Financial Outcomes Like a Cat?

By James E. Wilson via Iris.xyz

You can learn a lot about investing from cats.  

Have you ever watched a cat stalk something? Cats have an incredible ability to focus. They see movement extremely well within their field of vision, and if something is in their sight, nothing else matters. What if you focused on your desired financial outcomes like a cat? What if you too could eliminate the irrelevant noise?

Most us are quite skilled at “scanning for errors.” Even in good markets, we can always find at least one part of a portfolio that distracts us from the whole. We wonder why one account performs differently from another? Does this really matter?

Like the cat, our sole focus here is on outcomes. 

If your portfolio is well-diversified, there will always be differences in performance among the various parts.

Isn’t that what diversification is about? As a colleague likes to say, “diversification gives you something to always complain about.”

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