This is a letter to myself.
If I could choose my course in life again, I would walk the same path.
This is what makes me; this is what I am.
Investing equals freedom. But not that one from the low-cost ads promising investing is easy, the success is guaranteed.
I mean freedom in the truest sense: responsibility for your actions and inactions and the ability to achieve your goals not despite but because of the difficulties.
Investing could be summed in one equation:
Freedom = agency + accountability
The stars are never aligned perfectly, and financial markets test our agency. Not only that, but we must also practice extreme ownership. Forget about blaming anything else except yourself.
Is that enough to become a successful investor?
No.
Three things are guaranteed on the market: uncertainty, effort, and pain. And the best is yet to come.
Despite how brilliant analysts and risk managers we are, winning is optional. So, to get the chance to win, we must survive.
To survive, we need:
· Curiosity
· Resilience
· Accountability
Alfa resides in overlooked corners of the market. Be curious.
The markets will drain emotional and financial capital. Be resilient.
You are in charge—no one else. Be accountable.
There are no shortcuts. To remain curious, resilient, and accountable, there is only one option: discipline.
Is that enough to become a successful investor?
No.
The secret is that there is no secret. The market offers constant uncertainty, guaranteed efforts, unbearable pain, and optional gains.
Despite that, there is hope.
The list below looks deceptively simple. But I promise you, this is the only way to find yourself and eventually win in the market.
I am not that smart to figure it out. I was dumb enough to disrespect all the rules below and wise enough to learn from my mistakes.
First, let’s find out what NOT to do:
Do not follow the mainstream.
Do not consume information with a low signal-to-noise ratio.
Do not be scared to venture into the overlooked corners of the market.
Instead, focus on:
Develop your own opinion.
Consume information with a high signal-to-noise ratio.
Take a calculated leap into the obscure corners of the market.
This is The Old Economy Substack, a place for industrious investors who despise viral mediocrity, mental laziness, and political correctness.
Here, I share my thoughts on old-economy businesses such as shipping, mining, banking, and energy. I have broad interests, so occasionally, I write about history, philosophy, and politics through the prism of markets.