As 2013 fast approaches its demise we’re squarely in the season of holiday parties, big meals, too much food (and perhaps drink), catching up with friends and family who are around for the season, annual “best of” lists and a mad dash to try to squeeze in any last minute “to-dos” that remain unchecked on your list marked “To-Do In 2013.”
Given the time of year, it’s natural (and healthy) to look ahead to 2014 as discussed here, but also to retrospectively look back on the year that was in terms of how you approached your investments and more broadly your finances.
At Dividend.com we like to use a mental framework whenever we’re looking back and bucket things items into three, simple categories:
1. Stop
2. Start
3. Continue
If you think about this mental exercise in the context of personal finance or investing you will come up with an improved framework for your decision-making going forward. This is less an exercise about specifics of the stocks within your portfolio and more so about your behavior and reaction to circumstances related to your portfolio.
How It WorksStop
Upon reflection you might look back on 2013 and realize you prematurely sold a good position in a fundamentally sound stock based on irrational or emotionally charged reasoning. Perhaps you came across one of the many perma-bears online ranting about the imminent crash of the stock's price based on no other rationale than bluster and hand waving. The blog post triggered an emotional reaction–fear of loss–and prompted you to scratch your itchy ‘”sell&#
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