Subtract!

Subtract…

…Or the more popular version, “less is more,” was first made popular by the architect Ludwig Mies

Take everything away except what is necessary (note: the problem is people have been taught more is necessary when it comes to investment safety.)

Steve Jobs approach was one of simplicity. Make computers beautiful that are lovely to use. 

Marie Kondo has brought subtraction into people’s lives by pointing out, “Tidying is the act of confronting yourself.”

Derek Sivers wrote a piece on subtraction right here. My favorite part. It’s length. 

The idea of subtraction has been around for millenia. And yet the world wants us to buy more. Have bigger houses. Own more cars. Consume more. Click more. Look at our devices more.

And my personal fight. 

More ticker symbols. More diversification. More rebalancing. More trading. More checking out. More fear. More confusion. More worry. 

Why?

It’s good business. 

A few weeks ago. I was talking to a perspective training client. And he said to me, I’m not over diversified, as I only have 10 ETFs. 

And I understood why he thought that. After all, most portfolios have 20 to 50 positions. So a portfolio of 10 ETFs looks “properly diversified.” But he was leaking tens of thousands of dollars a year, unnecessarily. In fact his “only 10 ETFs” was still creating anxiety and worry because he was still worrying about the next 50% correction. The amount alone isn’t the solution. 

The amount of symbols is just one form of tidying up. But if those 10 or two or even one remaining symbols in someone’s portfolio are still over diversifying their money then this type of tidying up didn’t work. As ZenHabits says, Subtraction is beautiful: it creates space, time, clarity.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

So few words…

  1. The most dangerous person is the one who listens, thinks and observes.”- Bruce Lee
  2. Great health is the best “deep value” investment you can make. Right on.
  3. A picture is worth a thousand words. Which country is doing better? India or China? It’s no contest.

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