As an investor, merely recognizing stock market distractions as entertainment rather than information is step one to limiting their negative influence.
The first ingredient to a good decision is clear thinking. Unfortunately for investors, our hardwired thought processes don’t always offer the clarity we need. It’s good to take a deeper look.
Long-term investors should spend more time researching a company’s corporate culture and how it can strengthen (or weaken) its economic moat.
The fear of regret and loss has kept many investors from making important investment decisions. Though we’re biologically hard-wired to think and feel this way, there are some tactics we can employ to work through these forces.
Like a medieval moat, all economic moats eventually deteriorate and lose their defensive value. It’s just a question of when it happens and how the company adapts to that change.