To Have or to Be? — Fromm's Question Reflecting on the Investor's Mind

Fromm's question of 'To Have or to Be?' offers important insights for investors. The experience of checking one’s account every time returns rise, and being unable to let go of assets when they fall, is common among many investors. Does this reaction truly reflect the actual market situation, or is it a psychological response we possess? GoldenCircle emphasizes the importance of understanding the balance between emotion and reason in investment decisions while exploring this issue.

Having and Being: Two Attitudes of Investors

Fromm distinguished human life into two modes: 'having' and 'being'. When applied to investing, it can be divided into a 'having' attitude where the size of assets or returns equates to my value, and a 'being' attitude based on investment judgment. The having attitude risks distorting self-evaluation based on asset fluctuations, while the being attitude requires a careful approach based on investment principles. GoldenCircle believes understanding and harmoniously utilizing these attitudes is crucial.

How to Improve the Quality of Judgment

In investing, it is essential to separate one’s value judgments from asset fluctuations. While both having and being can coexist, clarifying the boundary between them can contribute to successful investing. GoldenCircle supports investors in making better decisions through this judgment process. By utilizing the Golden Circle Decision Wheel, it publicly shares flows such as market data, market regime identification, risk assessment, strategy archetype matching, and suggested target asset allocations, helping investors strengthen their own judgments.

Honest Evaluation and Standards of Action

The having attitude is not always wrong. At times, it can help in protecting funds. However, GoldenCircle aims to clarify this distinction so that investors are not swayed by the fluctuations of their actual accounts and can establish their own standards of action. It is important to ask oneself, "What kind of investor do I want to be?" and to set standards based on actions rather than outcomes. This will serve as a useful guideline in moments when emotions overwhelm reason.

Through Fromm's question, we can reflect on our mindset in investing. Avoiding being swayed by emotions and improving the quality of judgment can be key to investment success. GoldenCircle continuously offers various programs to help investors make better decisions through this inner reflection. Remember that your investment decisions should be made based on your own judgment.