Of all the decisions you make as an investor, how much risk you take outweighs all of them. It is more important than costs, more important than diversification, more important than picking the right stock / fund / investment.
For the bored (read: profitable) investor, the bias to action is a constant threat. As we become more passive in our strategies, the moral license to ‘do something’ is exaggerated, and must be curtailed.
Part 1 of the Things that Matter / Things that Don’t series. Having a World View means having a center – a core set of philosophies about how the world works, what is objectively true and false, and what actually matters.