The Intelligent Investor

I'm currently reading The Intelligent Investor by Benjamin Graham with commentary by Jason Zewig.  According to Warren Buffett, it's the best book on investing ever written.  A great lesson is found in the commentary on Chapter 4.  It reads as follows: 

There are only two ways to be an intelligent investor:

1.)  by continually researching, selecting, and monitoring a dynamic mix of stocks, bonds, or mutual funds;
2.)  or by creating a permanent portfolio that runs on autopilot and requires no further effort (but generates very little excitement)

That's it.  You're either an expert or you're not.  The first scenario takes up more time but gives you greater returns. The second yields slightly smaller returns but is simple.  Both are perfectly sound approaches to investing. 

The trick is sticking to the one you pick.  The investor who dabbles is the one who gets burnt.  He gets burnt for many reasons, but most importantly because he doesn't have the discipline to stay the course when times are tough.

It's a great life lesson.  Either commit to being extraordinary or put it on auto-pilot and forget about it.  There is no in-between. In-between is a road that leads nowhere, at least nowhere you want to go.

Strike the Match.  Take Action, Be Extraordinary.