Collaborative Fund: Internal vs. External Benchmarks

I have no idea how to find the perfect balance between internal and external benchmarks. But I know there’s a strong social pull toward external measures – chasing a path someone else set, whether you enjoy it or not. Social media makes it ten times more powerful. But I also know there’s a strong natural desire for internal measures – being indepen... See more

A wonderful question from Morgan Housel on measuring your results internally rather than externally:

"Would I be happy with this result if no one other than me and my family could see it, and I didn't compare the result to the appearance of other people's success?"

Most of us have inherited notions of "success" from someone else or have arrived at these notions by facing a seemingly endless line of hurdles extending from grade school through college and into our careers. We constantly judge ourselves against criteria that others have set and rank ourselves against others in their game. Personal goals, on the

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I know this is controversial talk and antithetical to the success mantras of the metric obsessed, performative, materialistic, linear, Key Performance Indicator driven world we live in, but someone needs to play the role of the annoying child who questions lazily adhered to and potentially harmful conventions, if only to stress-test them. I mean, w... See more

Last year I had dinner with a financial advisor who has a client that gets angry when hearing about portfolio returns or benchmarks. None of that matters to the client; All he cares about is whether he has enough money to keep traveling with his wife. That’s his sole benchmark... “Everyone else can stress out about outperforming each other,” he say... See more