Tillinghast suggests that investors should view shares as partial interests in enterprises rather than just numbers on a screen. “Training our minds on businesses rather than stock prices moves us in the right direction,” he advises. He acknowledges that investors may not be equally skilled in analyzing every security or industry, but by focusing on areas they understand well, they can ensure they’ve conducted thorough and accurate analysis.
Make careful decisions
Tillinghast emphasizes that decisions are pivotal in determining investors’ long-term success. Therefore, he advises investors to approach every investment decision, regardless of its size, with great care and deliberation.
(Disclaimer: This article is based on Joel Tillinghast’s various interviews and his book Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing.)