This is a guide I use for my own investment approach – it comes from an individual investor´s perspective and experience.
I put together a rulebook for strategic investing to serve as a guideline to create and evolve a written investment plan to manage my own money. It shows a way to integrate historically successful strategies into a diversified portfolio and how to avoid behavioral biases and other mistakes in execution. You can read the guide on this blog by following the numbered posts (1 through 9)
In my investing experience of over 15 years, inconsistent strategy jumping and many behavioral mistakes led to consistent underperformance and frequent losses in patterns that I have since read and heard about from many others. Anything that worked even temporarily had a systematic component and incorporated a mechanism to keep me from making mistakes. The noise of news and the urge to implement any new idea kept me from sticking with these simple, good ideas for very long. The pattern kept repeating itself.
All the mistakes and tendencies to do the wrong thing at the wrong time, that I describe here, I have experienced myself.
My conclusion: I need to have a portfolio framework that I can consistently follow and that is written down in an individually tailored investment plan to be a successful investor. I need to include realistic investment goals to measure my results against in this plan.
The problem: what do I actually put into the plan? How do I boil down all those books, research papers, blog posts, articles, podcasts and so on into a personal portfolio that fits my individual goals, preferences and risk tolerance. That I´m confident to hold and adapt to calm or turbulent markets?
This is my personal blueprint to create and refine such a plan.