🧠 1 Simple Trick to Making Better Investing Decisions


In 2017, Alex Honnold scaled the 3,000-foot sheer cliff in Yosemite known as El Capitan with no ropes. One mistake would had lead to a painful death.

A movie called Free Solo documented Honnold’s risky ascent. The climb is widely considered to be one of the greatest mental and physical feats by a human…ever.

While we are in awe of Honnold’s breathtaking climb, we disagree that it was his greatest mental feat ever.

Instead, we think that happened in the late fall of 2016.

With thousands of dollars on the line and a film crew waiting, Honnold made his first attempt at free soloing El Capitan. Part way up, he didn’t feel up to the challenge, so he called it quits.

That might seem like an easy choice now, but put yourself in his shoes in that moment. With adrenaline pumping, high expectations, and a documentary crew counting on him — the pressure to continue must have been immense.

But, he called it off anyway. And that decision surely saved his life.

We think that was his true greatest mental feat.

Honnold had a secret weapon that helped him make that gut-wrenching decision. It’s what author Annie Duke calls “kill criteria”: predetermined factors that would automatically lead to a concrete decision.

The idea of “kill criteria” is valuable in investing as well.

Before making an investment, decide what types of events would cause you to sell. List at least three.

Doing this beforehand is crucial. Your thinking will be much clearer. Studies show that if you get evidence you’ve made a bad decision, you’ll double-down on that bad decision moving forward. That can wreck you financially.

Kill criteria are one of the most effective ways to get out of a bad situation. You let yourself off the hook and live to fight (financially) another day.

Over the long run, few things are more important than that.

In other news, our flagship financial statements explained simply course opens for enrollment in five days. We made some major changes to the course based on student feedback, so we believe this will be our best cohort ever.

If you want to be notified when enrollment opens and secure an early sign-up discount, click here.

Wishing you and your loves ones a wonderful holiday!

– Brian Feroldi, Brian Stoffel & Brian Withers

Sponsored by ConvertKit

Looking for a new way to boost your annual income?

You’re not alone: Over 65% of content creators make less than $10K a year. Are you ready to see revenue breakthrough this year?

So many creators like Sahil Bloom, Aquila Farrell, and Matt Ragland are finding long-term success by monetizing their content with digital products and pairing that with ConvertKit for lead generation, email automation, and selling those digital products.

Find out how top-earning creators are using ConvertKit Commerce to grow their income in 2022.

Read More

One Simple Graphic:

One Piece of Timeless Content:

“It’s different this time.” As investors, we’ve been told to ignore that advice.

But every once in a while, there’s an argument to be had that things have changed. Howard Marks, co-Chairman of Oaktree Capital, penned a recent blog titled Sea Change. He explains why stocks may be in for a rough ride ahead and bonds are starting to become attractive.

One Twitter Thread:

We love Warren Buffet’s wisdom on investing and life. We love it even more when someone crams 50 of the Oracle of Omaha’s insights into an easy-to-read thread. @Vivek_Investor has done just that.

twitter profile avatar

Twitter Logo
May 2nd 2020

One Resource:

Sahil Bloom has become one of my favorite creators. He shares beautiful Twitter threads on how to live a healthy, wealthy, and fulfilling life. His newsletter The Curiosity Chronicle explores the topics of his popular threads topics in more detail. Best of all, it’s free.

One Quote:

More From Us:

👨‍🎓 Our flagship financial statements course opens for enrollment in five days! Want to be notified and secure an early sign-up discount? Click here.