Investment

Why I Invest

I began investing in securities in 2020 because I realized that Social Security retirement benefits alone would not be sufficient to cover my living expenses after retirement.

My Investment Approach

I allocate approximately 70% of my portfolio to U.S. stocks and 30% to U.S. Treasury ETFs. My stock investments include both dividend-paying and growth companies, without a rigid allocation between the two. I focus more on the long-term value of a company than on short-term price movements, and I generally aim to hold my investments for at least one year.

Why I Do Not Invest in Index ETFs

The complicated process of researching individual stocks and pursuing investment returns can be a difficult and sometimes stressful journey. At the same time, however, it keeps my mind active, stimulates my intellectual development, and educates me by continually exposing me to information about the wider world.

I also believe that walking this demanding path helps me develop the ability to confront and overcome difficulties. As a meaningful and engaging pursuit in retirement, I can think of few activities more worthwhile.

Lessons I Have Learned

The practice of investing calls for many virtues. Above all, I believe self-discipline is essential. The ability to research and evaluate investments comes next, while decisiveness and an honest understanding of oneself are equally important.

Excessive ambition can easily disturb one’s peace of mind, sometimes leading to sleeplessness, anxiety, or depression. Major financial losses can also create severe stress and adversely affect one’s health. For this reason, learning to govern one’s own mind must come before seeking investment returns.