Someone shared with me a “stock tip”. I did some research and believed so much into it and made the decision to buy..!

If you are like me and most people I know, it starts with someone in a social gathering sharing a “stock tip A” and someone believing so much into it.

Then we decide to do some research and extend our belief by finding the data and details to solidify our decision of why this single stock A is worth investing into.

We do the same over time and then accumulate many “Stocks” with no coherent value of decision making but all based on someone else’s story. And even then, we will be worried to put too much into one stock for fear of an idiosyncratic risk of a single company disappearing like “Wirecard”.

When we have more spare cash, we adopt this same model over and over until we realize that we have many stocks and funds that are all over the place. What markets become volatile, which do we sell and buy?

What about the companies that are unheard of, that we might never have heard about of the Apple’s, Tesla’s and Nvidia’s in the early stage. By the time the names come to the public view, typically their valuations have grown to become fairly lofty. But the other question is how many of these small companies grow to become giants in the industry?

💥Does this decision making process make sense?

Well, I previously used this strategy and I can share with you that this does not get me to my big long term goals which need to be sustainable over decades of investment periods into my retirement years which may last 4-5 decades.

So I needed a better way to plan and invest.

Instead, what we do is to help you to reframe the process the other way. Start with your BLUEPRINT of your plan like constructing a building!

💡We go through a process. We start by asking you what your goals are, how much time you have, understand risks of markets, reframe our mental models towards uncertainty, bring confidence through planning before we even decide what asset allocation to use.

What has been your experience and is there a better way you would suggest to bring greater confidence and reduced risks?