In his latest article at Woodlock House, Chris Mayer explains why it’s a bad idea to continually check your portfolio. Here’s an excerpt from the article:
To start: I don’t like to follow the returns of my fund’s portfolio too closely. For example, I try not to actually log in to the account unless I know I want to do something. I don’t want the daily blow-by-blow on prices. It’s bad for the investing psyche; it makes you impatient and lose perspective.
Those prices flashing before your eyes cry out for action. Feeding that into your brain every day (or worse, multiples times a day) invariably compresses timeframes and makes every day seem important.
Then before you know it, you are one of those people who go around with explanations for why such-and-such stock was up (or down) that day. Seems a recipe for madness. (As Gandalf said in Lord of the Rings: “Tell me, friend, when did Saruman The Wise abandon reason for madness?” I don’t know if this quote really applies here, but I felt like sticking it in).
You can read the entire article here:
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