It’s particularly hard to keep the faith when you’re losing money or have lagged the market for several years. You start to wonder if your strategy still works or if something has fundamentally changed. But the truth is, no strategy works all of the time. So these periods of financial and psychic suffering are an unavoidable part of the game. Inevitably, weaker players fall by the wayside, creating more opportunity for those with the sturdiest principles and the strongest temperaments. As Greenblatt puts it, “One of the beauties of the pain that people have to take in underperformance is that,
...more
