The Sloth Investor

If one lesson stands out from the annals of financial history, it is that investors get in their own way. These self-imposed hurdles often stem from over-complicating investment strategies and/or trading too much. For most investors, a simple investment approach is the best tactic. There is truth to the old adage that the best performing accounts belong to those that have died, and could no longer get in their own way. Of the 5 ‘Sloth Investing’ principles, I think the power of simplicity is particularly crucial.

Investors have an in-built bias towards action, which the media only encourages and the industry loves to exploit. But R P Stevens is perfectly right: lethargy and sloth produce much better outcomes.

I really like the idea of investing slowly, patiently and persistently, with low costs and an unshakeable focus on the long term.

For many, investing is both complex and intimidating. The Sloth Investor, through his 5 bedrock principles and naturally inactive demeanour, provides a clear, evidence based approach to investing. It’s the perfect antidote to the complicated jargon commonly used by the financial media.