Dear Reader,

Parenting in 2024 feels like a constant race to create that Pinterest-perfect childhood. What if we could intentionally do less? In today’s email, we’ll explore the surprising benefits of mindful under-parenting—a concept that surprisingly relates to smart investing. Stay with me; you might be surprised.

I hope you've had a great week! It’s the third Sunday of the month, and today, I want to chat about something a little different: parenting. Yes, you read that right—parenting. So, grab a cup of coffee, and let’s uncover how this unexpected topic connects back to our investing strategies.

​

The Surprising Power of Boredom (and Why Doing Less Can Be More)

In the September 15th edition of The New York Times, Dr. Darby Saxby, a clinical psychologist and professor at the University of Southern California, shared a thought-provoking article titled "Why Parents Should Ignore Their Children More Often." In it, Dr. Saxby argues that modern parenting—with its relentless focus on keeping children at the center of everything—might actually be backfiring.

In traditional hunter-gatherer societies, children learned by observing, experimenting, and engaging with the world around them, rather than through rigid schedules or constant adult supervision. They grew up within the rhythms of their community, gaining insights from their surroundings. Reflecting on this, I’ve noticed that my own children often rush from one structured activity to the next, leaving little time for free play or even boredom—from school to extracurriculars to weekend birthday parties.

​

Embracing Unstructured Time

So, what if we borrowed a page from Dr. Saxby’s playbook? What if, instead of filling every moment with structured activities, we allowed more unstructured time—creating space for exploration, self-directed play, and learning through real-life experiences?

​

The Power of Boredom

Dr. Saxby’s argument is compelling: by shielding kids from boredom, we might actually be limiting their growth. Boredom isn’t just a void to be filled; it’s a powerful catalyst for development. When children have time to sit with their thoughts, they’re not wasting time—they’re building essential skills. In those unscheduled, quiet moments, the brain’s default mode network activates, sparking creativity, problem-solving, and deeper emotional intelligence. These moments of stillness foster the very traits that help kids understand the world on a deeper level.

​

The Takeaway for Parents

The takeaway? Sometimes, the most valuable thing we can do as parents is to step back and let our kids experience the world on their own terms, without constant intervention. This doesn’t mean letting them do whatever they want but rather providing the freedom to explore while being ready to step in decisively when needed. But this isn’t just about parenting—it’s a principle that applies to investing too.

​

From Parenting to Investing

Like parents, many investors feel compelled to always be doing something. We think that the more we tweak our portfolios, the better our returns will be. Yet, countless studies show that overactive investors tend to underperform. Why? Because the impulse to constantly take action often leads to poor decisions—buying high, selling low, or reacting to the latest headlines instead of focusing on the long-term potential of solid businesses.

​

The Nvidia Case

Take Nvidia, for example. If you had invested in the company five years ago, your return would be an astounding 2,750%. However, this magnificent gain didn’t come without challenges. To achieve it, you would have had to endure six drops of over 20% and even a significant 66% decline.

​

The Art of Patience

Great companies often face volatility, but patient investors are the ones rewarded in the long run. Just as children flourish through exploration, successful investments thrive when given the freedom to grow without constant oversight. The key is to focus on quality companies and let time and compounding work their magic, rather than micromanaging every fluctuation. Resist the urge to react to market noise. Focus on quantitative fundamentals. Numbers don’t lie, and a disciplined approach will help you avoid emotional pitfalls.

​

The Smartest Move: No Move

So, next time you feel the urge to “do something” with your portfolio, remember: sometimes, the smartest move is no move at all.

​

Embracing “Less is More”

At MonkStreet, we embrace this “less is more” philosophy. That’s why we’re building a scientifically backed tool to help long-term investors identify high-quality companies based on their fundamentals—and then stay the course.

​

The MonkScore® Helps You Remain Sane

At the core of our approach is the MonkScore®—a single, science-backed metric that distills a company’s overall health and potential. This allows you to focus on identifying great businesses and letting time work its magic, free from the constant urge to tweak your portfolio. When the news cycle goes wild over one of your companies, you can simply check the MonkScore® to see if the fundamentals remain as strong as ever.

If you're eager to explore how your stocks stack up based on MonkStreet’s science-backed analysis, click here to let me know, and I’ll send you the link for you to try as soon as the platform is ready for debut in the coming weeks.

​

Finding Balance in Parenting and Investing

I believe investing, like parenting, requires patience. It’s about knowing when to step in and when to let things unfold. Just as children thrive when given freedom, great companies flourish with room to operate, while we remain ready to guide when necessary. It’s this balance of guidance and freedom that fosters resilience and long-term success.

​

Your Thoughts?

I’d love to hear your thoughts on how you balance active involvement and independence in both parenting and investing. Do you have a personal story about finding that balance? Feel free to reply with your insights!

​

Until next time, keep exploring, stay curious, and invest wisely.

Cheers,

The Investing Monk