We understand things better if we are directly involved. We all have to live somewhere, and so houses are the default big asset we think of people deciding to buy/own. We know our home. A roof over your head is a very easy problem to communicate.
If someone offers to buy your house, and suggests a price that is less than what you think it is worth... it is easy to say no. Especially if you didn’t even want to sell. A reluctant yes may squeak out if you have no option but to sell, and no one else but that cheeky person to sell to.
With investments, when the price falls, there is panic! All a price is, is a quote. The last agreed number for which a share changed hands. The lack of real-time knowledge of price (noise) for houses brings some calm.
The best tool for long-term investing is the ability to choose what to pay attention to. To place your attention consciously in alignment with little actions that add up.
Fundamental investing is when you get your money a job. Your money becomes a mini version of you (with more flexibility) that can earn on your behalf. “The actions that add up” is the real work the money is doing.
Why is it making money? What problem is being solved? What is the ask? What is the offer? What is the container? Or the hardest problem of the lot in making money... “How do you get paid?”. Fundamental questions about building value.
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