Just Buy Funds And Sleep? Why I Am Actively Investing Instead

I recently had a conversation with someone who mentioned something along the lines of: "You are 23. Why are you reading annual reports? You should be studying, networking and partying instead."

He could be right. I could save time by doing automated investing and earning average returns.

But I don't invest just for the returns. I do this because I enjoy the process.

The Learner's Mindset

I don't view my time studying the market as "work" trying to generate Alpha. By reading into companies and analyzing their financials, I am gaining a wider picture of how Singapore's economy functions. I am learning to read analyst reports, understand balance sheets and follow business news. These are skills that I hope will help in my career and any business I take on. I will have a certain level of business acumen that other Computer Science students may not have. 

It's Not An Expensive Hobby

Some people pour plenty of hours into hobbies like Golf or Gaming. 

You might spend 10 hours a week on playing games, but the return on investment is essentially zero. You might spend 10 hours a week on playing tennis, but the cost of this could go into thousands. 

You might spend 10 hours a week reading business news, opinions and reports. It costs you nothing but time, and you could earn a very real return on investment on this as well.

As long as the hobby is relaxing and not stressful, it is a net positive. Analyzing companies and journalling my thoughts and reflections on investment does help decompress from other stresses. This is a productive leisure.

The Behavioural Firewall

If I did not pick stocks myself, I know myself enough to tell that I would get bored. And a bored 23-year-old with money can be dangerous. Boredom leads to speculation, which can lead to me trading my portfolio into zero. By allowing myself to actively manage my portfolio, even if it consists of boring dividend stocks, I satisfy my urge to be involved while ensuring I stay vested for the long term.

Summary

Investing and finance has turned into another facet of my personal life. The "return on investment" is not just my CAGR, but it is also the knowledge, discipline and the satisfaction of building something with my own hands that I may also share with others. 

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