Ben Carlson, a renowned portfolio manager and blogger, highlights a critical aspect of investing that often goes unnoticed: the paradox of better access leading to potential returns. In a recent interview, Carlson argues that while the investing landscape has become more accessible, it has also become more challenging to maintain discipline and focus. This is a thought-provoking piece that delves into the complexities of modern investing and the importance of strategic decision-making.
The Paradox of Better Access
Carlson begins by emphasizing the unprecedented opportunities available to individual investors. Zero-dollar commissions, fractional shares, ETFs, and easily accessible accounts have democratized investing, allowing anyone to participate. However, this very accessibility presents a unique challenge. With numerous options at our fingertips, it becomes increasingly tempting to make frequent changes, a behavior that can significantly impact investment outcomes.
The constant influx of information from social media, newsletters, podcasts, and analysts further exacerbates this issue. The pressure to keep up with the latest trends and market movements can lead to impulsive decisions, which Carlson warns against. He emphasizes that a steady stream of information can be overwhelming and counterproductive in the long run.
Saying No to Stay Disciplined
To combat this paradox, Carlson advocates for a disciplined approach to investing. He suggests that investors should pre-commit to a written plan, defining clear guidelines for their actions. This plan should act as a filter, helping investors determine whether a new product, fund, or tip aligns with their long-term goals. By automating the decision-making process, investors can avoid the pitfalls of emotional and impulsive choices.
Carlson acknowledges that this approach requires discipline and self-control. He uses the example of the CBOE Volatility Index (VIX) spiking to 31.05 in March 2026, a moment that often triggers undisciplined investors to abandon their strategies. He emphasizes that such volatility is a natural part of the market, and investors must remain committed to their plans during these turbulent times.
The Case for Venture Capital ETFs and Private Assets
The discussion then shifts to the rise of venture capital ETFs and the push to include private equity and private credit in 401(k)s. Carlson reiterates his point that not every financial innovation deserves a place in an investor's portfolio. He highlights the challenges associated with private market investments, such as longer lock-ups, opaque valuation methods, and higher fees. While these factors may not automatically disqualify a particular investment, they should be carefully considered before inclusion.
The Takeaway: Writing Your Own Rules
Carlson's message is clear: success in investing requires a disciplined and strategic approach. By defining the rules and guidelines that work for an individual's financial plan, investors can avoid the distractions and temptations of the market. This involves saying no to opportunities that may seem appealing but ultimately do not align with long-term goals. The investors who consistently compound their wealth are those who have already decided which doors to keep closed.
In conclusion, this article highlights the importance of staying focused and disciplined in a world filled with investment choices. By embracing a pre-commitment strategy and writing one's own rules, investors can navigate the complexities of the market and achieve their financial objectives.
