"Dammit! I wish I had so-and-so's returns."

Why? Don't externally compare. Internally improve instead.

The internet is an amazing place. No matter where our interest lies there is quality information to help find our way. Sadly, there is also plenty of distraction determined to lead us astray. The obvious trick is being aware enough to tell the difference.

Online investing comments are no different. There is a wealth of useful material mixed with a steady stream of mindless chatter. On one hand, crowdsourced knowledge and exposure to the thoughts of others can benefit any investor. On the other, it is ridiculously easy to get sidetracked by empty analysis or short-term takes. And that, my friends, is a fool’s game.

It is always tempting to pull up the day’s big gainers or others’ portfolios and lament, “Man, I wish I could get those kinds of returns.” I should know because for the longest time I did the same. It is human nature to compare ourselves to others. We just can’t help it. The problem is unless you are literally the best (and maybe more importantly luckiest) investor in the world, there will always be someone with better returns. So why on earth would I make that my benchmark?!? While our lizard brain might constantly crave snap judgments and instant feedback, that is a terrible way to gauge investing success.

Personally, it took years to realize returns are not the end game. We have zero control over our returns. We only control what we own and why we own it. Investing is not just grabbing the hot name or chasing some arbitrary return. Nor is it market conditions, business models or pundit predictions. Instead, it is continually educating yourself in hopes of bettering your financial future. Once you discover that outlook, comparing returns becomes irrelevant no matter what time frame you choose. All that matters is improving your abilities today so you might increase your odds of beating the market tomorrow. It is seeing a bigger picture.

Author Simon Sinek gives an excellent talk on this idea. He calls it playing “The Infinite Game”. Though it is presented through a leadership lens, the concept applies equally to investing, business or just about any walk of life. Sinek observes that in some contests the goal is not necessarily to win the game but rather to keep playing successfully. An infinite game has no defined endpoint and continues to go on whether you decide to keep playing or not (hmm, sound like the market?). Therefore, participants should adjust their strategy accordingly.

As a competitor (investor), I decide what approach to take. The game (market) will accommodate me either way. I can choose to obsess over short-term objectives and superficial noise. Or not. I can work toward short-term wins and arbitrary rankings. Or not. I can envy those ahead of me and gloat over those behind. Or not. In fact, in a truly infinite game I can choose whether “ahead” or “behind” even exist, at least in comparison to others. If my goal is to keep playing successfully, the only person I am competing against is myself. All I have to do is be better today than I was yesterday, which makes the journey significantly more important than the destination. That is a simple yet powerful perspective, and one I have found applies to much, much more than just my portfolio.

Below is Sinek’s speech. I believe it is well worth the 30 minutes. Besides, a broader outlook never hurt anybody. Hope you enjoy it.

Thanks for reading and good luck out there.

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