Becoming a Seasoned Investor
Seasoned in my mind, means several things, such as:
- Being able to withstand physical hardship, strain, or exposure.
- Being able to bear up under hard times.
- to be competent with a skill or ability.
- When you are seasoned, you can see the truth about a situation. You are not naive. Naive means deficient in worldly wisdom or infomed judgment, lacking in experience, or to learn from experience.
When you are seasoned, you become prudent. But here’s the catch: Most investors are not mature or seasoned, nor are most advisors. They repeat the same mistakes over and over again ad infinitum, without really learning. Unseasoned investors chase markets. Unseasoned investors also panic in down markets. They stock-pick, they invest in track records, and they market-time like crazy. That last type of investment behavior really ticks me off, and I see it all the time.
Excerpts from Main Street Money by Mark Matson