What should I focus on when investing?

A client sent me the below pyramid that acclaimed author Morgan Housel built. Morgan told a story that accompanied it that involved two individuals. One was a distinguished managing director at a large bank that had spent his career in investing while the other was a woman who was orphaned as a child and worked as a at a modest salary her entire career. It is my conviction that the pyramid explains why the single woman was able to give 7 million away at her passing in the very same year that the aforementioned banking executive filed personal bankruptcy. The secretary focused on the bottom of the pyramid, the executive on the top.

Beware of advisors and television personalities who want to focus on security selection and taxes instead of your behavior. This misplaced focus will lead to poor results.

I like to spend a lot of time understanding each client’s story so that I can help shape investor behavior. That is my most important job.. The bottom of the pyramid is what is going to drive performance.

Jim Cramer telling you what stock to buy is not going to move the needle and will give you the illusion that you are ‘working’ on investing.