Shlomo Benartzi, a household behavioral-finance specialist and professor at the UCLA, Anderson School of Management has used the term “Ulysses Contract.” as a means of keeping investors focused.
Ulysses of ancient Greek literature had resisted the Sirens’ song to avoid shipwreck, by having himself tied to his ship. In the same way, individuals could be under some form of voluntary contract with themselves, not to act unwisely under outside pressure, whenever volatile and erratic events occur.
As a researcher and student of the importance of discipline for several decades, I have investigated about 1,600 strategies, along with their pros and cons. I have found that discipline is far more essential to investment success than strategy itself. (See the EarlJ. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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