I consider myself a non-competitive person. I think there is room in the market for all participants to do relatively well. The market, as a whole, compounds over time. (100% of my 401k is in Vanguard ETFs because I know this to be true.) We can all be winners with enough patience.
My individual stock/equity investing most often falls in one of three categories (the more it overlaps, the better off I am):
- I understand this company.
- I want this company to do well.
- I believe this company has done well and will continue to so in the future.
Beating the market is not a motivation for me. Maybe because I am skeptical of my (or any specific person’s) ability to do it over a long range of time.
I see my investments as political donations. You give money to a candidate whose platform you believe in and want to see succeed.
To me, investing is no different. I don’t want to take profit in companies that have a mission antithetical to my personal beliefs, goals, values, culture, etc.
I’d rather my dollar garner a moderate (but consistent) return in a company I respect than chase market beating returns in a company I despise or don’t understand.
What do you think? How do you invest?