Mindfulness – Episode 1 – Thumbnail

Can we grow our investments more by becoming more mindful?

5 Minute Read

31 May 2021

By Shane Monks O'Byrne

There is a huge amount of evidence that mindfulness serves a variety of potential advantages. Can it, however, benefit us in becoming better investors?

Here is an interesting video from our Chief Executive Officer – Shane Monks O’Byrne, quant investor, lifestyle designer, and adventure-enthusiast – And this is Aikido Finance 

Mindfulness and Investing Infographic

Mindfulness and Investing

Here is the video transcript: 

Mindfulness is being conscious or aware of what you are doing and your state of being. Investing mindfully can dramatically increase investment returns, reduce stress, improve your quality of life, and decrease what it takes to get to financial independence. Today I’m going to discuss 9 things you can do to inject some mindfulness into your investing. Actions:

  • Have patience. Take solace in the knowledge that good things take time.
  • Systematic investing is a great way to reduce stress and improve returns
    • less thinking = better results
    • ETFs (DCA) or systematic (quantitative) strategies are a great tool
    • Talk about the scale (fully-outsourced fund manager – underperform, ETFs – match, Quant – outperform)
    • The more active you become, the more emotionally challenged you become
  • The more you look the worse you do – reduce stress, improve returns
    • Pull in OSAM and Taleb stat
    • So you can sleep at night
    • time horizon and rebalance periods (the longer you horizon the better. Day traders are super stressed)
  • Stop-loss (around the 20% mark). Systematized panic sell.
    • Only use strategies that have performed well in terms of return and risk over the long term
    • Pick strategies with risk levels you are happy with a small-cap momentum strategy is going to be much more volatile
    • Metrics you can look at our return, volatility, Sharpe, max decline
  • Mindful activities: Meditation, Journalling (decision making), Nature/exercise, Taking time out from work and from the laptop
  • Invest! Not investing is an investment/risk decision in itself
  • The best investment strategy is the one you can stick with.
  • If you can’t explain your system simply, you don’t have a good system. It should be repeatable