The best way to measure your investing success Meaning Factcheck Usage

Context

Graham wrote this in a post-war environment, but he was speaking to a timeless truth. He was pushing back against the get-rich-quick speculator mentality that has always existed. The book is his manifesto for a more analytical, calm, and disciplined approach—what he called “value investing.” This quote is the heart of that argument: it’s a shift from external, uncontrollable benchmarks to internal, controllable processes.

Usage Examples

So how do you actually use this? Let me give you a couple of scenarios.

First, for the young professional just starting out. Instead of frantically trying to pick the next Tesla, they should focus on setting up automatic contributions to a low-cost index fund. Their success isn’t in beating the market this year; it’s in their high savings rate and their discipline to keep contributing, month after month, through ups and downs.

Second, for the person nearing retirement. Their measure of success shouldn’t be that their portfolio gained more than their neighbor’s during a bull market. It should be that their asset allocation is sound, their withdrawal plan is sustainable, and they have the discipline to not take on excessive risk just to chase one last hurrah. Their plan is their safety net.

To whom it appeals?

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FAQ

Question: But isn’t the whole point of investing to make as much money as possible? Doesn’t that mean beating the market?

Answer: It’s a common trap. The pursuit of “beating the market” often leads to taking on too much risk, making emotional decisions, and ultimately *underperforming*. A steady, disciplined approach following a sound plan is, statistically, far more likely to build substantial wealth over the long haul.

Question: What does “behavioral discipline” actually look like in practice?

Answer: It means not checking your portfolio every day. It means having a pre-defined set of rules for buying and selling—and sticking to them. It’s not selling everything when the news is scary and the market is down 20%. It’s the ability to be greedy when others are fearful, and fearful when others are greedy. It’s simple to understand, but incredibly difficult to execute.

Question: So should I just ignore the market’s performance entirely?

Answer: Not ignore, no. You should be aware of it. But you shouldn’t be *driven* by it. Use market downturns as an opportunity to buy assets at a discount if your plan allows for it. Use market highs as a time to rebalance and take some profits if that’s what your plan dictates. The market informs your actions, but your plan is the boss.