Save and Conquer

Most people are good at controlling their tempers in public. After a disappointment that my wife’s team at work suffered yesterday, I was talking to her about how every now and then it is wise to remove yourself from the aggravation, shout a bit, calm down, and then go back and fix whatever has caused the problem.

I am a fairly even-tempered person. I once lost a consulting position because a supervisor from a previous job said I was too well liked and would not be able to push people as hard as the new position required. I apparently did not show enough aggression. Oh well, that is just who I am.

There are times when I feel like breaking something out of frustration. But I never do that when or where it matters. In other words, I delay my emotional outbursts until I get into a situation where letting off steam has no consequences.

I try to follow this practice of delaying my emotions when investing, as well. There are times when I get pumped about the high returns I’ve seen, and there are times when I get angry at myself and the market in general when I see my investments lose money. But rather than act when I am feeling emotional, I take some time to step back, holler if I must, and then approach the problem without any attitude or emotions.

We are currently holding a pretty large cash position, have stayed away from financials, and have not dropped nearly as much as the overall market. Still, I have to watch my temper as the value of our portfolio has gone down. I remember we are invested for the long term and that these drops in the market eventually lead to good buying opportunities.

Stumble it!