Here's an analogy you might like. Do you believe that more stronger or weaker swimmers drown each year? The default for many is to say that more weaker swimmers drown. In fact, it's the stronger swimmer as they are more confident and therefore swim in deeper/risker waters.
This is similar to your point. More data can lead to people becoming more confident (stronger swimmers) which means they take more risk (swim in deeper water) and end up worse off (drown).
This resonates so deeply! As someone who used to get completely buried in the spreadsheets and endless market tickers, I realized all that complexity was just feeding my anxiety.
Your point about Hick’s Law is spot on. I eventually stripped everything back to a minimalist "dual mandate" system:
half pure growth ETFs and half covered call ETFs for monthly cash flow.
Having just two core pillars completely cleared the clutter from my mind.
Because the system is so simple and the monthly cash flow is consistent, I can easily stick to the golden rule of doing absolutely nothing during market dips.
Thank you for sharing this reminder—simplicity really is the ultimate financial cheat code!
Love this! And thanks for taking the time to read the article. Two core pillars is a great strategy. I own two ETF’s: SCHD and CGDV. Letting these two run the show gives me peace of mind and the freedom to own a few individual stocks. Again. Thanks for stopping by.
Love those choices! SCHD and CGDV give you the ultimate real-life utility:
bulletproof growth mixed with reliable cash flow.
Letting that two-pillar machine run the baseline completely removes the stress from market dips, giving you the sanity to hold individual tickers stress-free.
Out of curiosity, how do you manage the asymmetric single stock picking part of your portfolio?
Exactly! I love this one - two punch 🥊 when it comes to single stocks, I try to hold companies that I enjoy learning about. I view it as I’m owning the business long term. A simple rule of thumb, if I can’t get thru an earnings call, it’s not for me. Most still focus on dividend growth with the exception of SOFI which I bought a few years ago. Maybe one day it will give us a divvy! I’d love to hear more about your portfolio!
Here's an analogy you might like. Do you believe that more stronger or weaker swimmers drown each year? The default for many is to say that more weaker swimmers drown. In fact, it's the stronger swimmer as they are more confident and therefore swim in deeper/risker waters.
This is similar to your point. More data can lead to people becoming more confident (stronger swimmers) which means they take more risk (swim in deeper water) and end up worse off (drown).
Yes that’s a great analogy. More of something - even if it’s something good - can create a false sense of security.
This resonates so deeply! As someone who used to get completely buried in the spreadsheets and endless market tickers, I realized all that complexity was just feeding my anxiety.
Your point about Hick’s Law is spot on. I eventually stripped everything back to a minimalist "dual mandate" system:
half pure growth ETFs and half covered call ETFs for monthly cash flow.
Having just two core pillars completely cleared the clutter from my mind.
Because the system is so simple and the monthly cash flow is consistent, I can easily stick to the golden rule of doing absolutely nothing during market dips.
Thank you for sharing this reminder—simplicity really is the ultimate financial cheat code!
Love this! And thanks for taking the time to read the article. Two core pillars is a great strategy. I own two ETF’s: SCHD and CGDV. Letting these two run the show gives me peace of mind and the freedom to own a few individual stocks. Again. Thanks for stopping by.
Love those choices! SCHD and CGDV give you the ultimate real-life utility:
bulletproof growth mixed with reliable cash flow.
Letting that two-pillar machine run the baseline completely removes the stress from market dips, giving you the sanity to hold individual tickers stress-free.
Out of curiosity, how do you manage the asymmetric single stock picking part of your portfolio?
Exactly! I love this one - two punch 🥊 when it comes to single stocks, I try to hold companies that I enjoy learning about. I view it as I’m owning the business long term. A simple rule of thumb, if I can’t get thru an earnings call, it’s not for me. Most still focus on dividend growth with the exception of SOFI which I bought a few years ago. Maybe one day it will give us a divvy! I’d love to hear more about your portfolio!
Spot on, Jeremy.
That true ownership mindset and the earnings call filter are excellent tools for high conviction.
I take a macro approach rather than picking stocks.
I see global equities as a giant, infinite machine driven by human innovation.
I use VT to own the world, capturing long-term global growth through its automatic self-balancing.
I'm not trying to beat the market; I just want to capitalize on it.
I pair VT with PAYG (a covered call ETF) focused on global blue-chips and tech leaders. It’s highly volatile, but it juices my monthly cash flow.
This dual-mandate setup lets me cash-flow compound right now while securing my future.
Four centuries of history show this machine keeps grinding upward.
My only job is to feed it and manage my own behavior.
Today, I'm actually living off this distributions-meets-growth strategy.
It's even enabling me to move from Hong Kong to Thailand for geo-arbitrage.
There's always a trade-off, but the real-life freedom is entirely worth it!
Reminds me of this great Buffet quote 👇
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”
Sure thing!