How Self-Reflection Can Improve Your Investments

Every six months, we conduct an intense process to bring on two new interns from Northeastern University. As an alumnus myself, I (Rob) am required to use the preferred term "co-ops."

Our co-ops work full-time for six months. We treat them like full-time analysts and expect them to help produce content and research new ideas.

Just last week, we held interviews for our next cycle of co-ops. During this process, we ask candidates all kinds of questions to understand how they think... and to figure out if they'd be a good fit.

But there are two "must ask" questions that we never skip...

First, we ask each candidate for one piece of advice they'd give to their most recent employer. We find it's an excellent proxy for critical thinking.

We also ask for three things they liked most about their most recent job – specifically, what gave them the most satisfaction. This helps us understand if the work we do matches what they're looking for.

These questions give us a lot of insight as interviewers. But in our most recent round of interviews, one prospect flipped the second question back to us.

He asked what we like best about our current jobs. And it made me realize that these questions are a great exercise – no matter what phase of life you're in.

So today, I want to share my answers... and delve into why this small bit of self-reflection might even make you happier and more efficient in your investing.

I don't always see eye to eye with the people I work with...

And that's one of the great things about my job.

I get to talk with so many smart folks in my line of work... from clients and business partners to a continuous stream of new employees through the co-op program. And they all help me look at the market in different ways.

Regular readers might recall my essay on the "steel man" technique from last October. Working with people who have different opinions makes your own ideas even stronger.

I also love building a holistic view of the macroeconomy.

You see, most of the time in investment research and the broader investing world, people are bucketed. They're either "equity people," "credit people," or "macro people."

They may be energy analysts... or experts on investment banks... or maybe they only research the homebuilding sector. Either way, they don't look at the big picture.

But because of our partners and prior experiences, we've been able to bridge all three (equity, credit, and macro) successfully. And that gives us a better view of where the entire market is headed.

These corners of the investing world work in harmony. We're able to see that and learn more about what goes on at the macro level. Doing this can instill more confidence in our clients, and it gives our employees diverse opportunities.

Lastly, picking stocks is at the core of what we do. And one of my favorite parts of this job is idea generation. Once you've done the macro work to understand where we are in a cycle and what kinds of companies should do well... that's when the fun starts for me.

It's rewarding when the stocks we pick perform well. And personally, I enjoy the process of finding them.

I also like learning about different industries, emerging technologies, and how the competitive landscape changes over time.

I consider myself lucky to get to do what I love...

And I hope that as long as I live, I'll remain in this line of work.

That brings me to you, our subscribers. Use this exercise to reflect on what you enjoy... and spend time on those things. Find smart folks to help you with the things you don't love doing.  

As much as I enjoy picking stocks, I know that's not the case for everybody.

Investing is an important way to build wealth. But you shouldn't dread it. If you enjoy researching companies, following initial public offerings, or looking at macro data – spend time doing those things.

If you don't enjoy this stuff, there are all kinds of financial products to help you. Exchange-traded funds ("ETFs"), registered investment advisers ("RIAs"), and newsletter services like ours provide different levels of "do the work for you."

You might prefer researching what kinds of industries will do well without diving deep into the specifics of each company. In that case, you could buy an ETF that lets you own the entire industry.

That way, you wouldn't have to worry about how each company performs.

Or you might enjoy poring over macro data, and you think you have a good handle on how to allocate your money between various asset classes. But maybe you don't like taking the time to pick individual securities.

Well, RIAs and investment newsletters can help fill that role.

RIAs can manage your money for you at your direction. And there are all kinds of investment newsletters (like ours) that can do the deep company research for you.

By focusing on the parts of investing you enjoy most, you'll actually become a better investor...

A 2022 study out of the University of Warwick found that being happy (for instance, doing a task you enjoy) makes people 12% more efficient.

So not only will you save time on your least favorite activities – you'll actually be more productive in the work you do enjoy.

Life is short. I urge you to consider what you like about investing... and other aspects of your life. Then think about how you can find even more time for those things.

You might be surprised by the difference it makes. 

Regards,

Rob Spivey
February 17, 2023

P.S. At Altimetry, we're always looking for ways to improve our investment research. That's why we teamed up with our corporate affiliate Chaikin Analytics to identify what we call "Perfect Stocks"...

In short, we combined the Chaikin team's one-of-a-kind "Power Gauge" technical tool with our rigorous Uniform Accounting standards. We've only been watching out for Perfect Stocks for a little more than four months... and already, roughly half of our picks are up double digits.

For a limited time only, you can still gain access to our Perfect Stock Portfolio – along with my colleague and Altimetry founder Joel Litman's list of 10 popular "Toxic Waste" stocks to avoid at all costs. Learn more here.