A Peek Into The Archetype Of The Lazy Boring Investor

The intricate difference between being lazy and being bored is that in the former there is a lack of desire to do anything, while the latter is a lack of motivation to do the things currently available.

In many cases. being lazy is mostly a choice to avoid effort, and boredom is a feeling of dissatisfaction with the level of engagement offered by current options.

To a large extent, investing is more of a waiting game, in which patience and discipline are key virtues that are often well rewarded.

One of the concepts out of which the lazy boring investor originated is simply as a practical approach to investing that prioritizes long-term wealth creation over short-term excitement.

Another concept is as a recognition that not everyone has the time, interest, or expertise to actively manage their investments. Perhaps, it could also even be out of sheer boredom with people constantly checking their investment portfolios, especially in this modern age.

Image Source

The underlying principle behind all these concepts is achieving some form of balance between minimizing emotions, maximizing long-term returns, and potentially maintaining a low-maintenance and cost-effective investment strategy.

Thrill Seeker Vs. Strategic Sleeper

On the opposite end of the spectrum is the thrill-seeking investor. I think many of us more or less fall into this category every now and then. We can't help it, the markets are dancing, and it's tempting to jump in and join the party.

Unlike the "boring" counterpart, a thrill-seeking investor craves the constant action and adrenaline rush of market swings. Enticed by hot investment tips and the allure of overnight success stories.

This form of excitement obviously leads to investment decisions that are fueled by emotions like fear and greed, rather than sound analysis.

Which results in impulsive buying at market highs and panic selling during downturns or frequent buying and selling of holdings, racking up transaction fees and potentially missing out on the long-term potential of well-researched investments.

To me, what's ironic on this whole thrill-seeking adventure is how it can turn into a subconscious endless loop of chasing the next "hot tip", only to be constantly disappointed when the promised riches fail to materialize.

In contrast to the thrill seeker, the strategic sleeper is the embodiment of the "lazy boring investor" archetype.
Sleep is figuratively speaking, of course.

A more literal meaning is simply resisting or significantly reducing the urge to constantly tinker with one's investments, and I think this usually comes as an effect from focusing on investing for the long haul.

Avoiding the Pitfalls of Neglect

However, nowadays, taking it too literally can carry a lot of downsides too.

Being "lazy and boring" as an investor is essentially a strategy to lose the grip of short term market fluctuations, as in not being overly carried away by them. Perhaps, being indifferent or unfazed towards them.

Image Source

But this doesn't imply complete disconnection or oblivion from this fluctuations, as in a dreamless sleep where one is not aware of what's really happening around them.

Especially, in this current age, market changes can happen in a relatively short amount of time, some of these changes can be quite fundamental too.

Imagine taking a break from checking your portfolio for a few years, lulled into a sense of security by a steadily climbing market.

Then, one day, you decide to peek in... only to discover your once-healthy portfolio in shambles.

The takeaway is that the "strategic sleeper" doesn't need to be glued to the financial market news, but complete neglect can be very risky.


Thanks for reading!! Share your thoughts below on the comments.

Posted Using InLeo Alpha