Malcolm Gladwell is always a great read. His recent article in the New Yorker on how David beats Goliath is making me rethink the ways that I play by Goliath’s rules in the world of investing and sometimes get crushed. David knew that the goal was to win and he won by not going toe to toe with the giant. For most investors, winning is having enough money to retire on your own terms. Goliath’s rules can cause you to chase performance, pay too much for advise, misunderstand risk, and get distracted by day to day fluctuations. It seems to me that the Davidic question is, “Am I on a reasonable course to have the kind of life that I want to have in the future?” If not, what should you change to get on course?
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