In today's episode, we're going to consider the subject being a formula for success. But before we look at, that, thank you again to all of our listeners who tune into the Purposeful Wealth podcast. I've made apologies before that the recordings haven't been maybe as frequent as we would have liked, and the library hasn't been updated. That's just largely been due to the other competing factors, such as family and business, and perhaps also the good weather we've had of late and being able to enjoy, a walk around the golf course. Can't say that it's been great rounds of golf, but it's certainly a good walk, if nothing else. But we can blame the weather for that, too. But, today we're going to consider a formula for success and really want to just talk about the fact that combining, an enduring investment philosophy with, a simple formula that helps maintain investment discipline can increase the ODS of having a positive financial experience. So, if you want to increase the odds of having a positive financial experience, it's important to ensure you start with, an enduring, robust investment philosophy with a simple formula that helps maintain our discipline as an investor. David Booth, the founder and chairman of the American Fund Manager Dimensional Fund Advisors, once said, the important thing about an investment philosophy is that you have one you can stick with. So I would agree with that, 100% entirely. However, what is an enduring investment philosophy? Investing, as you know, should be and is a long term endeavor. Indeed, people will spend decades pursuing their financial goals. But being an investor, as you know, can be complicated, challenging, frustrating, and sometimes frightening. This is exactly why, as David Booth says, it is important to have an investment philosophy you can stick with, one that can help you stay the course. This simple idea highlights an important question how can we, as investors, maintain discipline? Through optimistic markets or bull markets, the pessimistic markets or the bear markets? Political strife, economic instability, or whatever crisis of the day threatens progress towards our investment goals. Over our lifetimes, us. Investors face many decisions prompted by events that are both within and outside our control. So, without an enduring investment philosophy to help inform our choices, we can potentially suffer unnecessary anxiety, which then leads to poor decisions and outcomes that, of course, are damaging to our long term financial well being when we don't get the results we want. It's true that investors, or us, as investors, can blame things outside of our control. Investors might point the finger at the government or central banks or markets or the economy. Unfortunately, the majority will not do the things that might be more beneficial such as evaluating and reflecting on their own responses to events and ultimately taking responsibility for their decisions. Some people suggest that among the characteristics that separate highly successful people from the rest of us is a focus on influencing outcomes by controlling one's response or reaction to events rather than the events themselves. And this relationship can be described using a simple formula. And it is this this formula, I love this. The E plus R equals O.
So the E is the event, the R is response and the O is outcome. So the event plus response equals the outcome.
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