The Competitive Edge (Part 4)

Everyone’s looking for an edge. How can you be sure that you have one?

There are three paths to performance: working harder, working smarter, and working calmer. Working harder is simple: do more research and apply what you know to what you own. It’s simple but not easy. It requires more reading, phone calls, meetings, and everything. It’s physically exhausting.

Working smarter requires a deeper understanding of the way the world works. Competing this way requires you to consider how and why people behave as they do. These investors are more like financial philosopher;, philosophical concepts dominate their thinking. They can often see a trend before it emerges. It’s intellectually hard.

Working calmer means you keep your head when everyone around you is losing theirs. Often you have to get away from the financial centers like New York—or just not answer the phone. And you often do the opposite of everyone else, selling when markets are exuberant and buying when they seem depressed. It’s emotionally difficult.

Hard work, smart insight, and a wise temperament aren’t easy. But they’re the only way I know to maintain a competitive edge.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2014-02-20T12:33:17+00:00 February 20th, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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