Good morning everyone!
Lately, the stock market’s been serving up green days like free samples at NTUC. If you’ve been checking your portfolio, chances are you’ve seen some nice green numbers.
Feels great, doesn’t it? Almost like a little voice whispering, “You’re a natural at this investing thing.”
WARNING: This is a TRAP.
Because the truth is, when markets rise, it gets hard to separate our skill from plain old luck (yes, luck does play a part in investing). And if we’re not careful, success can puff us up just enough that the market reminds us who’s really in charge.
To survive? You need humility.
Humility comes from the Latin word humilis, which means “low”. At its core, it simply means staying grounded, even when things are going well. It’s not about downplaying your wins, but rather it’s about keeping perspective and remembering the market doesn’t owe us anything.
In the context of investing, humility shows up in two ways:
The roots of an investment decision
I don’t know what I don’t know
Roots of an Investment Decision
When I first started investing, I used to obsess over stock prices. If the price went up, I thought I was a genius. If it went down, I thought I was cursed. What I didn’t realize back then is that the price isn’t the story, the business is.
Investing, at its core, is about understanding the business - how it grows, what it’s building, whether it’s sustainable. You make your decision with conviction, and then you wait. That’s it.
Now here’s where it gets tricky: when a stock doubles, everyone cheers. If you made the call, you might even pat yourself too. I’ve done it. It feels good!
But let’s be real: was it skill, or was it luck riding the wave? Because just as quickly as prices shoot up, they can tumble back down. Because I’ve had positions that climbed 100% only to retreat back to square one (some even worse) 🥲
And so in this context, humility means going back to your roots - remembering why you invested in the first place, not getting drawn into the “fake highs”, and resisting the urge to fall in love with the stock itself. The business is the business.
I Don’t Know What I Don’t Know
The second part of humility is accepting that you’ll never know everything. No matter how many reports you read or how deep you dive, there will always be blind spots. Same thing in life by the way. You don’t want to be known as the “I know” a—hole.
I’ve been in situations where someone questioned my thesis, and instead of listening, I found myself building a wall to defend it. That’s pride, not humility. And pride makes us reckless.
Think of it like driving a car. When starting out, you’ll double-check every mirror, and you grip the wheel tight. Then with time, you get comfortable. Maybe too comfortable. That’s when it actually gets dangerous.
But you know who’s more important than the driver? It’s the co-driver.
They’re the ones reminding you to check your blind spot, or nudging you before you miss a turn. In investing, a co-driver might be a mentor, a peer, or just a thoughtful friend who asks, “But what if you’re wrong?” They keep us safe, grounded, and yes, humble.
Staying Grounded
The higher we climb in both life & investing, the easier it is to get caught up in our own narrative. Humility reminds us to look back at where we started, to acknowledge the role of luck, and to never stop learning.
It doesn’t guarantee success, but it will keep you steady. And that steadiness is worth more than a quick win.
“Be like bamboo. The higher you grow, the deeper you bow” - Confucius
Till the next post, ciao!
Patience builds wealth,Bjorn