David Gardner

Exercising some 5 & 3 framework work this morning during my valuable study time after listening to the @RBIPodcast for the second time this week. The 5 & 3 technique from Rulebreakerinvesting.com channels energy toward an optimistic view of reality, and I would argue, the fundamentally correct state of reality over the long term, because the market trends from the lower left to the upper right over time. It helps train the mind, just as @DavidGFool talks about in the recent episode, to exercise 🏋️ for the truths we hold self-evident. “We are our own best teacher.” Furthermore, it means battling against our biology 🧬, as @arthurbrooks exposes the brain’s natural instinct to favor the negatives, because those instincts kept us safe from threats in the early days of civilization. We feel negatives three times as strongly as positives, and unfortunately, that’s exactly what most mainstream outlets use to capture our attention. It sells !! Compounding improvement, or “what’s good” in our standard of living at an average 2% return simply can’t compete with heavy-hitting negative news in the Short term as @kevin2kelly would say. Thus we use effort to exercise the 5 & 3 to rebalance the stakes and play the game with an undistorted view of judgement. The brain is lazy it wants the easy flow of information and that is unfortunately negative, it’s what’s kept us alive in the past, but if we’re not careful it is what will kill our Future returns. “All that matters is what happens next, everything else has already been priced into the markets, and the riskiest thing we can do with our money is take none.” In conclusion, fighting along side that lazy, liquid, natural flowing negativity and cultivating a rational balanced optimistic mindset is worth the effort, because time rewards it, but only in the long term, the only term that counts. I am grateful for open-minded yet efficient and laser focused leaders like the ones I’ve mentioned above to help navigate the sailboat onward! As I continuously strive for Excelsior! • Fool On!

Watch the full episode: youtu.be/IBzSnyJ9z9M