Chapter 6: Implementing Advanced Strategies
Why you should monitor you strategy
It's important to monitor your strategy regularly, considering the changing market environment and industry shifts. Markets are dynamic, and economic conditions, technological advancements, and regulatory changes can impact your investments.
By keeping an eye on these factors, you can make informed adjustments to your portfolio, ensuring it remains aligned with your goals and responsive to new opportunities and risks.
When should you change it
One of the most important steps that many people get wrong is changing their strategy too often. There's a reason why one of the best-performing groups of investors is, surprisingly, dead people—they don't change their strategy at all. Only change it when necessary.
What should you change
When considering changes to your strategy, focus on adjusting details while sticking to your core principles, whether they be value or growth.
For example, a reasonable change might be buying a different company if an industry shift permanently favors it, but always remain true to your fundamental investment approach. This disciplined consistency helps maintain long-term success and prevents emotional or reactionary decision-making.