🤔 Question Everything: The Power of Critical Thinking

There will be a lot/ and I mean a lot of people who will try to give you advice in life. Most probably want the best for you but don't exactly have the full picture of your life. I'll say it and let shots fire. These people don't know what's best for you.🤔 

Here's an example in financial markets-

Jim has a portfolio of $2M that he has built up since college. He is now 35. He speaks at corporate events and career fairs. At one of them, he tells his story to 2 college grads. He says he studied commodities and makes 5-6 trades a month, most of the time to buy more of what he already owns.

Student A decides to follow the same strategy. He studies the commodities market and trades at similar intervals every month. He continues this for 5 years and accumulates $100K with a 4% portfolio growth every year.

Student B decides to follow the same strategy but with a twist. He studies the market, index funds, bonds, and other instruments. After investing for 5 years he accumulates $170K with an 8% portfolio growth every year.

What might've happened here?

Likely, Student A was not suited to trade commodities or regularly in general. 90% or more day traders fail to beat the $SPY every year. Meanwhile, Student B, who invested in a generic index fund made more $$ than Student A.

These roles could very well be reversed. Student A could outperform Student B. It all depends on their characteristics and traits like patience, attention to detail, critical thinking, etc.

Here's an example from my life-

In my senior year of college, I was advised by someone whom I respected, yet respect to this date to join the incumbent world of corporate. He taught me a bunch of non-technical skills but I instead started working for a small high-growth startup. In the next 3 years I'd have a way higher impact at this company, get promoted several times, and learn enough sales to start my own side companies. One that I sold for a mid-5 figure amount and another that allowed me to work remotely from a new country every month.

If I'd taken 100% of the advice that this person offered me, I couldn't have gotten to where I am today, and I am content with what I achieved (still hungry for more tho lol). I wasn't ignorant of him, I instead chose to take a small grain of salt worth of advice from what he gave me. That worked out pretty well for me.

I've noticed this pattern several times in my life. Every time, I've taken just the right amount that could be beneficial for me. It is my opinion that every advice should be taken with a grain of salt. One should figure out what's best for them through constant trial and error and not wholely rely on advice freely given to them.

But again, take this advice with a grain of salt too!

🧠 You Might Find This Interesting

Learn from investing legends.

Warren Buffett reads for 8 hours a day. What if you only have 5 minutes a day? Then, read Value Investor Daily. We scour the portfolios of top value investors and bring you all their best ideas.

Subscribe with one click.

🧑‍💻This Week’s Browser History

1. One of my fav tools got acquired for $250K. The indie-hacker movement is going strong

2. 📈 NVIDIA has overtaken Microsoft to become the world's most valuable company

   

3. The 26 projects I've tried to build over the years, and why they failed