Part 6/11:
The conversation dives deeper into the practical aspects of investing. A recurrent theme emerges: reliance on thumb rules versus personal strategy. Toby mentions a penchant for individual stock picking, which can often lead to mistakes and miscalculations. “I have my happy 10% that I mess with,” he confesses—a cautious acknowledgment of the risk that derives from the fear of missing out (FOMO).
At one point, the dialogue touches on the age-old debate between index investing and stock picking. Toby’s approach emphasizes consistency and knowledge. He notes, “Psychology and human nature play a significant role in how we invest,” pointing towards the common pitfall of hubris where inexperienced investors chase performance.