Jaffe: Investing goals

Chuck Jaffe has an insightful column about what investors should focus on (link).

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most people are investing as if they are trying to make the most money, but what they want — and what they should be investing for — is the best life ...
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I strongly agree with the above. I was talking to a long time friend about investments. My friend has a method of choosing stocks that works for him. It has served him well for a long time. Other people sometimes suggest new things for him to try, but I remind him, if it ain't broke don't fix it. If a person has found peace of mind and relative financial security using what they already know and understand, there is little reason to tinker all that much with a tried and true formula.

Sometimes I'll meet young (or old) gunslinger type traders that report huge gains in a short period of time. I sometimes may look wistfully at those returns, but realize that I am not a spring chicken and would be foolish to take on big risks because I am almost certainly in a different phase in life from where they are.

Readers know that I like the term "mental capital." That wear and tear on the psyche is sometimes not worth a bit more return. Drawdown is an important concept (the loss if a position is sold at the worst possible time during the cycle). Some others may crave excitement, but again, at my place in life, I am happy to be free of excessive focus on every percentage point of return. Slow nickels are fine. I dislike fast moving markets, so will often sit out those conditions until the dust settles.