The painter has been. The topcoat is on. It looks great.
If you give a door a fresh coat of paint, it will look better. What you see is therefore a great outcome. Over time, however, what you see after each coat of paint is a problem. The layers easily chip. The definition in the moulding is lost. And when you try to fix it, a light sanding will no longer work. In other words, what’s underneath the topcoat is vital.
Do some decorators take more time and effort on what’s important? After all, once the topcoat is on, you couldn’t tell the difference. As we all know it’s hard to tell the difference between a quick sanding versus thorough preparation. In both cases, the painted finish looks the same initially.
Yes, it’s a metaphor for when people make their own investment decisions. So often the reason for buying or selling does not have the depth of thinking, which over time, will impact on portfolio returns. And it’s an argument that wealth managers will use for you to employ them. But sometimes, as we know, what seems robust today may not be what you expect over time.
It is why every individual needs to embrace self-directed investing. It may not mean 100% of your portfolio, you may simply allocate only 1%… it’s not the amount, but the depth of knowledge you gain.
Returning to the painting metaphor, its when you understand how to do the job properly and delegate to others, you can make sure they do the job properly and not use short cuts! Why? Because you know what to look for and what questions to ask.
If you like the way we think, you would love a conversation.