If the purpose of investing is to fund a very specific, very personal future objective, why do so many investors spend their energy trying to “beat the market” or chase the so-called “best funds”?

It is an easy trap to fall into. The financial world thrives on comparisons: indexes, benchmarks, fund rankings, and constant headlines about the latest market moves. Against that noise, it is tempting to measure your success against markets or your neighbour’s portfolio instead of your own goals.

But personal investing was never meant to be a competitive sport. You are running your own race. It does not matter who is ahead of you. All that matters is whether you reach your finish line. Success is not about scoring higher than someone else; it’s about having enough to fund your future. Winning in investing is deeply personal.

What Constitutes Winning?

Winning is not about outperforming an index. It is about achieving your life objectives:

• Retiring with dignity.
• Educating your children without financial strain.
• Buying the home you have dreamed of.

These are the only benchmarks that matter. The rest is a costly distraction.

What Do You Need to Do to Win?

Clarity about your goals defines the process that gives you the highest probability of success. The process is simple and straightforward:

1. Define your objective clearly. Know what you are working toward and why it matters.
2. Align your portfolio with your plan. Make your investments the engine that drives your own goals, not someone else’s.
3. Stay disciplined. Stick with your plan through ups and downs.
4. Avoid distractions. Chasing the “best” funds or fads derails progress.
5. Measure progress against your own goals. The only scorecard that matters is yours.

There are no medals for beating the market. When your attention shifts from your objectives to external comparisons, it creates space for poor decisions: panic selling, overtrading and chasing performance. These behaviours erode long-term success. Your plan is not built on outperforming an index; it is about meeting your objectives.

As Callie Cox recently noted: “If you’re searching for external validation, you will never get ahead. Not in life, and definitely not on Wall Street.”

 

Written by Marius Kilian

 

Source:

* “Running Your Own Race”, Callie Cox, optimistcallie.com, 2 September 2025