Friends,

As a beginning investor, I (Stoffel, here) learned the most important lessons the hard way. This one has to do with the intersection of curiosity and confidence.

In 2010, I was very bullish on Rosetta Stone. When the company came out with an earnings report the market didn't like, the stock fell by double digits. I immediately rubbed my hands together and thought, "Those suckers have no idea what they're doing. I'm increasing my stake." I was supremely confident.

That didn't turn out very well for me.

The stock just kept going down. Finally, I realized questions about the strength of the company's brand -- and its moat -- were totally valid.

I ignored the evidence right in front of my face. And I paid the price.

The upshot: it taught me a VERY valuable lesson: when the world reacts in ways that surprise you, above all else, BE CURIOUS!

Nassim Taleb once said,

"Curiosity is antifragile, like an addiction, and is magnified by attempts to satisfy it."

These days, when the market punishes a stock that I own, and I am surprised by it, I pause. I don't automatically do anything -- buying or selling.

I try to give a wide berth to the idea that others might know something I don't. And I try to get curious about it.

It's painful and, at the start, pretty dissatisfying. But over the long run, it's led to some very profitable decisions.

As my wife recently reminded me, getting curious about life's surprises can benefit you pretty much everywhere in life: relationships, politics, parenthood -- you name it.

In that sense, curiosity is a staple of developing a long-term mindset.

Wishing you investing success,