{"id":4812,"date":"2023-04-28T14:37:33","date_gmt":"2023-04-28T04:07:33","guid":{"rendered":"https:\/\/strawman.com\/blog\/?p=4812"},"modified":"2023-04-28T14:37:34","modified_gmt":"2023-04-28T04:07:34","slug":"process-pays","status":"publish","type":"post","link":"https:\/\/strawman.com\/blog\/process-pays\/","title":{"rendered":"Process Pays"},"content":{"rendered":"\n

\n\n\u201cTo invest successfully does not require a stratospheric IQ, unusual business insights, or inside information<\/em>,\u201d said Buffett in a foreword to Benjamin Graham\u2019s The Intelligent Investor<\/em>.<\/p>\n\n\n\n

\u201cWhat\u2019s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework<\/em>.”<\/p>\n\n\n\n

According to uncle Warren, factors like habits, character and temperament are what matter most. \u201cWhat you do need is emotional stability — You have to be able to think independently<\/em>.\u201d<\/p>\n\n\n\n

It’s difficult to argue with the sentiment, but how, exactly, does one think and act unemotionally and independently? Especially at times of extreme uncertainty where you’re watching your net worth drop by the day.<\/p>\n\n\n\n

One approach we like to preach here at Strawman is the process of journaling. Writing really is refined thinking, as Stephen King likes to put it, and you’ll find the very act of putting your thoughts down on paper — everything from your overarching strategy, right down to the nitty gritty of specific businesses — to be extremely clarifying.<\/p>\n\n\n\n

It’s also something against which you can hold yourself to account. <\/p>\n\n\n\n

It doesn’t need to be a daunting task. A simple one page outline of the key insights, risks and investment thesis can go a long way (Strawman member jcmleng<\/a> offers a great example with their recent post on XRF Scientific).<\/p>\n\n\n\n

It’s also important to realistically frame your expectations. Once you really internalise the inevitability that you are — right now<\/em> — likely holding a few stocks that will eventually prove to be duds, you’ll be more sanguine when something eventually goes south.<\/p>\n\n\n\n

While newer investors take each mistake to heart, and compound losses by acting emotionally, the experienced capital allocator merely shrugs it off as all part of the probabilistic nature of investing, and moves onto the next opportunity.<\/p>\n\n\n\n

The frustrating truth in this game is that you can be punished even if you have good reasoning, and rewarded for poor thinking (at least for a time). Nevertheless, process matters far more than any individual outcome<\/strong>; it’s about having a framework, as Buffett puts it, that tilts the odds in your favour and delivers a better result on average<\/em>.<\/p>\n\n\n\n

Consider also this logic: for a stock to be cheap the consensus MUST be wrong. Otherwise any upside would already be factored into the price. The very act of stock picking demands you to go against the prevailing view.<\/p>\n\n\n\n

Of course, it may prove that, after all, the market was right and you were wrong, but without the capacity to think independently and reach your own conclusions, without any variant perception, you’re relying on luck alone.<\/p>\n\n\n\n

Building good habits, refining your process and steeling yourself against emotional pitfalls isn’t easy. But, unlike IQ, they\u00a0can\u00a0all be improved. And that’ll give you a tremendous edge on those that don’t — even if they are the\u00a0smartest guys in the room<\/a>. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Strawman is Australia\u2019s premier online investment club.
Members share research & recommendations on ASX-listed stocks by managing Virtual Portfolios and building Company Reports. By ranking content according to performance and community endorsement, Strawman provides accountable and peer-reviewed investment insights. <\/em> <\/p>\n\n\n\n

Create your FREE Strawman account<\/a><\/div>\n\n\n\n
\n\n\n\n

Disclaimer\u2013<\/strong> Strawman is not a broker and you cannot purchase shares through the platform. All trades on Strawman use play money and are intended only as a tool to gain experience and have fun. No content on Strawman should be considered an inducement to to buy or sell real world financial securities, and you should seek professional advice before making any investment decisions<\/em>.<\/p>\n\n\n\n

\u00a9 2023 Strawman Pty Ltd. All rights reserved.<\/p>\n\n\n\n

| Privacy Policy<\/a> | Terms of Service<\/a> | <\/p>\n\n\n\n

ACN: 610 908 211 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cTo invest successfully does not require a stratospheric IQ, unusual business insights, or inside information,\u201d said Buffett in a foreword to Benjamin Graham\u2019s The Intelligent Investor. \u201cWhat\u2019s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework.” According to uncle Warren, factors like habits, character and temperament are what matter most. \u201cWhat […]<\/p>\n","protected":false},"author":5,"featured_media":4813,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"\nProcess Pays - Strawman Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/strawman.com\/blog\/process-pays\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Process Pays - Strawman Blog\" \/>\n<meta property=\"og:description\" content=\"\u201cTo invest successfully does not require a stratospheric IQ, unusual business insights, or inside information,\u201d said Buffett in a foreword to Benjamin Graham\u2019s The Intelligent Investor. \u201cWhat\u2019s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework.” According to uncle Warren, factors like habits, character and temperament are what matter most. \u201cWhat […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/strawman.com\/blog\/process-pays\/\" \/>\n<meta property=\"og:site_name\" content=\"Strawman Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-28T04:07:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-28T04:07:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png\" \/>\n\t<meta property=\"og:image:width\" content=\"715\" \/>\n\t<meta property=\"og:image:height\" content=\"477\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Andrew Page\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sage_simian\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Page\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/\"},\"author\":{\"name\":\"Andrew Page\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\"},\"headline\":\"Process Pays\",\"datePublished\":\"2023-04-28T04:07:33+00:00\",\"dateModified\":\"2023-04-28T04:07:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/\"},\"wordCount\":628,\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/04\\\/process.png\",\"articleSection\":[\"General\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/\",\"name\":\"Process Pays - Strawman Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/04\\\/process.png\",\"datePublished\":\"2023-04-28T04:07:33+00:00\",\"dateModified\":\"2023-04-28T04:07:34+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#primaryimage\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/04\\\/process.png\",\"contentUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/04\\\/process.png\",\"width\":715,\"height\":477},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/process-pays\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/strawman.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Process Pays\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/\",\"name\":\"Strawman Blog\",\"description\":\"The Last Straw\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/strawman.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\",\"name\":\"Andrew Page\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"caption\":\"Andrew Page\"},\"sameAs\":[\"https:\\\/\\\/x.com\\\/sage_simian\"],\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/author\\\/andrew\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Process Pays - Strawman Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/strawman.com\/blog\/process-pays\/","og_locale":"en_US","og_type":"article","og_title":"Process Pays - Strawman Blog","og_description":"\u201cTo invest successfully does not require a stratospheric IQ, unusual business insights, or inside information,\u201d said Buffett in a foreword to Benjamin Graham\u2019s The Intelligent Investor. \u201cWhat\u2019s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework.” According to uncle Warren, factors like habits, character and temperament are what matter most. \u201cWhat […]","og_url":"https:\/\/strawman.com\/blog\/process-pays\/","og_site_name":"Strawman Blog","article_published_time":"2023-04-28T04:07:33+00:00","article_modified_time":"2023-04-28T04:07:34+00:00","og_image":[{"width":715,"height":477,"url":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png","type":"image\/png"}],"author":"Andrew Page","twitter_card":"summary_large_image","twitter_creator":"@sage_simian","twitter_misc":{"Written by":"Andrew Page","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/strawman.com\/blog\/process-pays\/#article","isPartOf":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/"},"author":{"name":"Andrew Page","@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea"},"headline":"Process Pays","datePublished":"2023-04-28T04:07:33+00:00","dateModified":"2023-04-28T04:07:34+00:00","mainEntityOfPage":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/"},"wordCount":628,"image":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/#primaryimage"},"thumbnailUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png","articleSection":["General"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/strawman.com\/blog\/process-pays\/","url":"https:\/\/strawman.com\/blog\/process-pays\/","name":"Process Pays - Strawman Blog","isPartOf":{"@id":"https:\/\/strawman.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/#primaryimage"},"image":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/#primaryimage"},"thumbnailUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png","datePublished":"2023-04-28T04:07:33+00:00","dateModified":"2023-04-28T04:07:34+00:00","author":{"@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea"},"breadcrumb":{"@id":"https:\/\/strawman.com\/blog\/process-pays\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/strawman.com\/blog\/process-pays\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/strawman.com\/blog\/process-pays\/#primaryimage","url":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png","contentUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2023\/04\/process.png","width":715,"height":477},{"@type":"BreadcrumbList","@id":"https:\/\/strawman.com\/blog\/process-pays\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/strawman.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Process Pays"}]},{"@type":"WebSite","@id":"https:\/\/strawman.com\/blog\/#website","url":"https:\/\/strawman.com\/blog\/","name":"Strawman Blog","description":"The Last Straw","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/strawman.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea","name":"Andrew Page","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","caption":"Andrew Page"},"sameAs":["https:\/\/x.com\/sage_simian"],"url":"https:\/\/strawman.com\/blog\/author\/andrew\/"}]}},"_links":{"self":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts\/4812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/comments?post=4812"}],"version-history":[{"count":0,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts\/4812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/media\/4813"}],"wp:attachment":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/media?parent=4812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/categories?post=4812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/tags?post=4812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}