It has become trendy to use Zen themes in marketing and advertising. On this website we use Zen themes in a different way. The Zen of investing is a path – to reach the ultimate goal of financial security and independence. The specific Zen principles we use here are Balance, Clarity, and Simplicity.
Balance means having a plan that will guide you through good times and bad. It also means spreading your risk across several asset classes that tend not to move in concert. It also means handling difficult market environments with calm and confidence, which comes from your plan.
Clarity comes from sifting and filtering the vast quantity of data that is pushed through our media channels, and boiling it down into brief, understandable, and logical truths. From these truths, we can make a series of decisions that are much more likely to produce positive outcomes.
Simplicity comes from the application of Occam’s razor, which states that the explanation of any phenomenon should make as few assumptions as possible, eliminating those that make no difference in the observable predictions of the explanatory hypothesis or theory.
Zen as it is used on this web site has nothing to do with religion or spirituality. We use a practical interpretation of Zen principles to focus the mind. Â By doing so, we are able to become fully aware of what is actually happening in the economy and the markets.
The Four Noble Truths of Zen Investing
1. Investing requires decision-making under uncertainty. This can be stressful.
2. The cause of stress is attachment to preconceived assumptions and beliefs.
3. Attachment can be broken with open-mindedness and the willingness to learn from experience.
4. Each investor has a unique set of preferences, beliefs, skills, and temperament. Own it.