Everyone thinks you're wrong

Here’s the truth most of us ignore.

The best investment returns we’ll get will be from investing in index-tracking ETFs.

(If you didn’t understand that sentence, stop reading! Go learn what an index-tracking ETF is.)

It takes something different to beat the market. It’s incredibly difficult. Beating the market is rare, but somehow, each of us thinks that we are the exception.

So what does it take?

Of course, there isn't one answer. But there is something that’s top of mind for me.

To beat the market, you have to have a non-consensus opinion that is correct.

That might not sound like much. It might even sound obvious. But take a moment to think about it.

And ask yourself:

What are the things that you believe that (almost) nobody else believes?

And now:

How much money are you willing to bet that you're correct about those things?

Those two questions are the heart of investing.

If you aren't different from (almost) everyone, you'll make average returns. If your opinions or beliefs aren't correct, you'll lose money.

As Charlie Munger says:

"Boring" investors know that investing is not simple. We know that it's not easy.

We understand that we need to be thoughtful and bold.

Thanks for reading this week’s edition of Arena.

Until we meet again, good luck being “boring”.

~ Mordi