Investing as a Philosophy

Ultimately, investing is a philosophical statement you make with your own money about your beliefs and understanding of the nature of markets and Economics.

Every strategy is embedded within a way of seeing and understanding the world: its Weltanschauung (the German word for “world view”). You bet with your money about your beliefs on how Economics works and what can and cannot be known —and control— about it.

Underlying hypotheses about the nature of markets often go unnoticed or undervalued behind simplistic short-term results. However, they are the key to building strategies capable of surviving in the long term. In fact, if your underlying hypothesis and beliefs are not coherent with the nature of markets, your strategy —regardless of how smart it sounds— will not last and eventually will ruin you.

Today, almost every “serious” investing strategy provided by the investment industry is based on (always)incomplete empirical evidence (the inductive fallacy) or/and a misleading Keynesian point of view about Economics. The Austrian Economics point of view is superior to them as it taught us that empirical evidence will never be enough when dealing with hyper-complex systems as markets are, so our investment strategies have to adjust to the limitations of the nature of the markets.

Keynesian economics is a convenient pseudoscience for politicians and asset managers that can ruin you in the long run.

The Austrian Investor Strategy is much more than just another strategy because it takes into consideration both our human nature and the epistemologically nature of the markets when dealing with the art of investing.

After almost 20 years working as a professional in the investment industry, I have concluded that the least risky and more robust way to invest is to do it with a simple (more about simplicity here), Austrian and convex strategy, as explained here.