Why Life Isn't Lived in the Long Run
00:00:00.000 | - Why is it important for people to realize that
00:00:02.160 | while they might be investing in the longterm,
00:00:03.960 | they don't live longterm?
00:00:05.020 | - I saw that part of that quote from Daniel Kahneman,
00:00:07.200 | who recently passed away and he spent his whole career
00:00:10.020 | studying human foibles and human behavior and emotions.
00:00:12.880 | And when he gave his Nobel Prize speech,
00:00:15.360 | someone asked him like,
00:00:16.480 | why can't more people stay the course for the long run?
00:00:19.320 | He said, the long run is not where life is lived, right?
00:00:21.760 | It's a series of short runs.
00:00:23.840 | We were talking to a client a couple months ago
00:00:26.600 | who worked at Lehman Brothers.
00:00:28.080 | This person is making a lot of money working on Wall Street.
00:00:30.200 | They have the ability to take a lot of risk.
00:00:32.340 | But this person realized,
00:00:34.040 | I don't care what that ability is,
00:00:35.560 | what the spreadsheet tells me.
00:00:37.760 | I can't physically or mentally make myself do that.
00:00:41.080 | So I wanna take a more conservative route with my portfolio
00:00:43.560 | regardless of what the results are gonna be.
00:00:45.360 | I know my results would be better
00:00:46.820 | if I could invest more aggressively,
00:00:48.860 | but I have this mental block that's holding me back.
00:00:51.900 | And actually, I think that's the right decision
00:00:54.640 | as long as you don't take it too far.