5 Signs You’re Overthinking Investing! (Plus Money Q&A!)

Now, let's talk about five signs that you are overthinking investing.

See, one of the biggest problems that people have is when they start to invest, they think it needs to be extra complicated.

They think it's one of those areas in life where they really need to dial it in, that every single area of their investment plan needs to be absolutely perfect before they get started.

But instead, many people end up overthinking investing early on.

This is something that I did.

So when I was a new investor, the first investment that I actually made was at 16 years old.

And when I was 16, I decided to do a bunch of different research into all these different mutual funds and stocks and different things, and I ended up landing on a mutual fund that invested exclusively in South America.

Now, when I did this, I had no idea why I was doing this, but a lot of smart people were telling me, "Oh, this is a great mutual fund.

You should own this mutual fund." Looking back now, I know that mutual fund had some pretty high fees, but in addition, it wasn't simplified enough for me to understand what I was investing in, so I overcomplicated the situation.

Later on down the line, just two years later, I started to invest in other different avenues, things like individual stocks, but also penny stocks.

And there was a time at, when I was 18 years old, where I invested all of my money into one penny stock.

I was reading all these different financial newsletters, and I was like, "Wow, this one made a really compelling case for this media company that also is involved in movies and entertainment and all these other things." And they made the case as to why this was gonna go up and shoot up to the moon.

And I'm 18 years old reading this, and I'm like, "All right.

If I put all of my money I have to my name," which at that time was probably $1,000, "and I put it all into this one investment, what is gonna happen here?" I put it all into this one specific penny stock.

I think I owned over 1,000 shares of this thing, and guess what happened? In literally one day, that penny stock went down to zero, and a couple of weeks later, that business went completely out of business.

And so this lesson taught me that I was trying to overcomplicate investing, which led me to start studying what real investors do.

And I wanted to understand what people like Warren Buffett did, what people like Peter Lynch did, what people like Mohnish Pabrai did, what people like Charlie Munger did.

And a lot of my heroes out there are investors who focus on the boring.

They focus on the simplicity to understand how to figure out how to invest for the long term.

And so the more and more I studied investors like this, the more I realized I was doing this backwards.

I was trying to create these complicated systems with all these different complicated charts that were gonna allow me to find the diamond in the rough.

But instead, if I just follow proven strategies that have been those strategies time and time again, I am gonna be able to build wealth.

And this is what we teach people inside Master Money Academy, is I want you to follow proven investment strategies.

So we have students that'll come through there, and we simplify investing for them.

That's the goal with Master Money Academy is to simplify investing for them.