Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Friday, 19 June 2015

Gym wisdom #3

Words of wisdom

I've been gleaning some words of wisdom from the well-known oracle that is the gym blackboard at Adelaide Street over the past few months, including here and here

Another week, another pearler, although this one is in fact from a different branch of the same gym chain, over at Fortitude Valley.

Wise words indeed from the training staff at Fitness First, though methinks they should've whacked quotation marks around this nugget, as I'm pretty sure it was originally a Zig Ziglar meme. 

No matter.

Plenty of merit in this statement, 'tis true.

The world is certainly full of obscenely intelligent people who often seem to have more theories than Pythagoras, but also never seem to quite fulfil the greatest of their potential.

And nowhere is this more true than within the sphere of investing.

In investment it can help to be smart, certainly, and a level of analytical skill can also be a great help.

But equally over-analysis can lead to procrastination, which is often as much of a hindrance as it is a help, since wealth is best created over a long period of time and through using the awesome power of compounding growth.

Therefore, it is important to take action and actually get started.

It's all well and good to wait for everything to be "just right" before kicking off your investment plan, but in reality nothing is ever "just right", and you can be sure that someone will always be on hand to remind you of exactly that.

One useful analogy is that a ship leaving Sydney harbour for Southampton does not simply set its course on day one and hope for the best for the next sixty days.

Instead, it will aim to make small adjustments to its course routinely and regularly for the prevailing conditions.

But in order to get to its final destination, the ship does ultimately have to leave Sydney harbour and get out through the heads in the first place (even if the water does seem a bit choppy out there once you get past the whale-watching bit).

The internet is chock-a-block full of commentators who are cleverer than you - and certainly cleverer than me - but let's face it, if they could really see the future even half as clearly as they reckon they read the past, they would be billionaires ten times over, and I'm fairly sure that most of them aren't.

Taking decisive action is what counts.

Finally, if you're worried about making mistakes, there is some good news for you...and that is that everyone makes gaffes.

Clearly it helps if the early errors you make are small and manageable rather than catastrophic ones, so risk management is paramount.

But since we all necessarily make bad calls, in investing - just as in life - it is how one responds to the blunders which determines ultimate success. 

Too often people fail at something a few times and then decide to give it up forever as a bad job.

Oftentimes, it only takes one failure, which is to be patently unfair to your own abilities!

Those who resolve to take action and learn from sub-optimal decisions in order to "do better next time" will over the long term be the investors with the superior outcome. 

And that's as true in life as it is in investing.

If you don't take a chance, you don't stand a chance.


Detailed Labour Force figures next up...