Author Darius Foroux discusses his stoic investment philosophy, emphasizing the 90/10 portfolio split. He shares insights on individual stock holdings like the Dutch Stripe and combating FOMO. The podcast explores stoicism's role in investing and the guest's journey post-financial crisis.
Applying stoic principles in investing focuses on emotional control and decision-making for long-term success.
Combatting FOMO in investing involves prioritizing established companies over chasing trends, following a mindful contrarian approach.
Deep dives
The Journey into Investing and Stoicism
The speaker discusses their personal journey into investing, starting in 2007 before the financial crisis and the impact of their initial losses. They highlight how discovering stoicism in 2015 provided the confidence to return to investing. Stoicism's focus on managing emotions and controlling what can be controlled is seen as essential for long-term success in investing.
Applying Stoic Philosophy to Investing
The podcast guest delves into how stoicism's principles can be applied practically in investing, emphasizing the importance of maintaining emotional balance and clarity. They stress the significance of focusing on factors within one's control, decision-making, and judgments while ignoring external noise and uncontrollable market trends.
Choosing Investment Strategies Mindfully
The speaker outlines their strategy of cautious stock selection, investing primarily in well-established companies that have been undervalued or underperforming in the market. They share personal examples of making informed investment decisions, such as starting positions in companies like Adjean and Tesla after thorough analysis and strategic planning.
Dealing with FOMO and Maintaining a Stoic Approach
Addressing the fear of missing out in investing, the guest advocates for avoiding the pursuit of 'the next big thing' and instead focusing on established companies with solid foundations and growth potential. They share insights on combating FOMO by practicing stoic principles of detachment, shrugging off missed opportunities, and staying true to a mindful, contrarian investment approach.
Darius Foroux, author of the upcoming book 'The Stoic Path to Wealth,' joined the podcast to discuss his, well, stoic approach to investing.
This podcast episode was recorded on Tuesday, June 25, 2024 and was made available to premium subscribers the following day -- without ads or announcements. For more information on premium subscriptions, visit our Substack.
Content Highlights
How interest in philosophy rekindled his interest in investing after the great financial crisis (1:32);
A brief introduction to stoicism, a 2,300 year-old philosophy that is distinct from cynicism (4:08);
How to apply this to investing (6:14);
Isn't investing in indexes just the best way to go? (12:38);
The '90/10' portfolio allocation: 90% in the S&P 500, 10% in individual stocks (17:24);
The Dutch Stripe, trades in Amsterdam and on Pink Sheets (18:06);
Background on the guest (28:54);
The guest's second individual stock holding. Listeners will have heard about this one (33:01);