As we start a new year, it’s worth pausing to reflect not just on what we invest in, but how we behave as investors.
One of the most striking shifts over the last 70 years isn’t about markets or products, but about patience. In the 1950s, investors in the US held shares for an average of around 8.5 years. Today, that figure has fallen to less than six months.
Of course, markets have changed. Trading is faster, cheaper and easier than ever before. But alongside this convenience, something else has quietly crept in: short-termism.
The Illusion of Control
DIY investing has played a big role in shaping this mindset. On the surface, it’s empowering. With a few taps on a phone, we can:
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Trade instantly
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Access investments from anywhere in the world
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Buy individual shares, themes or trends at will
We’re constantly exposed to stories of extraordinary returns. “NVIDIA is up 2,000%.”
So why not buy some of that?
Shares look cheap, narratives sound compelling, and we convince ourselves we’re spotting opportunities others have missed. The hope is simple: buy now, profit quickly.
Until it doesn’t work.
When Markets Test Our Nerves
The problem with this approach is that it feels rational only when markets are rising.
When markets fall, sentiment shifts rapidly. Headlines become louder. Fear creeps in. Suddenly, doing nothing feels irresponsible. We start to believe we need to act, sell, switch, change course, just to feel back in control again.
This is where many investors come unstuck.
What DIY investing rarely explains is that activity and progress are not the same thing. In fact, excessive activity often increases the likelihood of poor outcomes.
Investing Without Direction Is Guesswork
At the heart of the issue is this:
investing without direction is pointless.
If you don’t know:
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what the money is for,
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when you’ll need it, or
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how much volatility you can live with,
then every market movement feels urgent.
We end up chasing returns without being clear what those returns are meant to achieve. Was the goal long-term growth? Income? Flexibility? Security? Without clarity, every decision is reactive, and mistakes become far more likely.
This is why so many investors buy after markets have risen and sell after they’ve fallen. Not because they lack intelligence, but because they lack structure.
The Quiet Power of Doing Nothing
“Doing nothing” doesn’t mean neglecting your finances or ignoring reality. It means:
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Having a plan
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Understanding your time horizon
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Accepting that volatility is part of the journey
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Resisting the urge to respond to every headline
When a portfolio is built with purpose, inaction is often a sign of discipline, not complacency.
Some of the most damaging investment decisions aren’t made during crashes or booms, but in the moments when we convince ourselves that this time is different and that immediate action is required.
Often, it isn’t.
A Better Question to Ask
Rather than asking, “Should I be doing something?”, a better question is:
“Has anything materially changed in my life, my goals, or my long-term plan?”
If the answer is no, then doing nothing may well be the most sensible decision you can make.
Good investing is rarely about cleverness. It’s about patience, perspective, and consistency, qualities that are increasingly hard to maintain in a world designed to keep us reacting.
As we move into the year ahead, it’s worth remembering that sometimes the hardest, and best, investment decision is simply to stay the course.
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