Keep it simple, silly

Elaborating on the power of simplicity, the authors not only drive home the point that “In an increasingly complex world, simplicity is the key to success. And to mental well-being and a better life on the whole” but also provide a step-wise guide of sorts to achieve simplicity – think different, deliberate practice and deep thought and relying on decisions based on frameworks or rules than judgements. The piece includes examples of simplicity from the investing world such as the successes of Systematic Investing Plan (SIP) and Exchange Traded Funds (ETFs). But the most fascinating example of the outperformance of businesses which make up the Simplicity Index – “Simple businesses can also make for great investments. Branding firm Siegel+Gale runs the Simplicity Index, which surveyed 14,000 respondents in nine countries to gather perspectives on simplicity and how industries and brands make people’s lives simpler or more complex. Siegel+Gale even made a stock portfolio comprised of the publicly traded simplest brands in their global top 10 list. That portfolio rose 433% from 2009 till 2016, compared with 135% for the S&P 500.”