TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE WINNING FORMULA Recently an online newspaper article caught my attention. Titled "Scientists found a formula for the perfect day. So, I tried it, how could I not piggyback off the back of someone else's investigation, hard work and anguish to find out whether the formula for a perfect day was true or not? To put your curiosity at bay, the formula for the 'best day ever' went as follows: 6 hours of family time + 2 hours with friends + 1.5 hours of extra socialising + 2 hours of exercise +1 hour of eating and drinking, less than 6 hours spent working, 1 hour of screen time and no more than a 15-minute commute to your work location. Simple right? (Ironically, these allocations total 19.75 hours, which would leave just 4.25 hours for nightly shuteye, an amount well below recommended sleep guidelines). The findings of the author's experiment were that it was impossible to satisfy each of these time allocations flawlessly, but they did come close enough in each area to notice a positive difference in the overall feel and mood of their day. What all of the above suggests is that managing your day is not wholly art, nor wholly science, but rather a combination of both. A suggestion that also applies to investing, which too often investors attempt to reduce to entirely art or entirely science. Investing undoubtedly involves numbers, calculating returns on investment or the various mathematic measurement tools designed for assisting with analysis. But the incalculable element of investing is human behaviour, which isn't calculable, not even for the smartest of the most intelligent humans. In fact, Sir Isaac Newton, an English mathematician, astronomer, theologian, author and physicist managed to secure a profit by identifying an investment bubble and exiting his investment. However, he couldn't avoid temptation when the price kept rising irrationally and he reinvested, but at three times his original investment amount, only to lose it all and go bankrupt. He summed up his experience with, "I can calculate the movement of stars, but not the madness of men". The question then is how do we blend both art and science when investing? This can be through choosing an asset that ticks the financial boxes to be regarded as 'quality' and then exerting the discipline to hold when the temptation of 'the next big thing' crosses your path. It can even be as simple as practicing patience and staying invested across all market cycles so that you receive the benefit of compounding returns. While we wait for scientists to crack the formula for the best investment ever, much like the findings of the author's experiment, applying a little of both science and art towards your investments should deliver a positive difference. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi GriffinPrivate Wealth www.bgprivatewealth.com.au AW7447697 TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE WINNING FORMULA Recently an online newspaper article caught my attention . Titled " Scientists found a formula for the perfect day . So , I tried it , how could I not piggyback off the back of someone else's investigation , hard work and anguish to find out whether the formula for a perfect day was true or not ? To put your curiosity at bay , the formula for the ' best day ever ' went as follows : 6 hours of family time + 2 hours with friends + 1.5 hours of extra socialising + 2 hours of exercise +1 hour of eating and drinking , less than 6 hours spent working , 1 hour of screen time and no more than a 15 - minute commute to your work location . Simple right ? ( Ironically , these allocations total 19.75 hours , which would leave just 4.25 hours for nightly shuteye , an amount well below recommended sleep guidelines ) . The findings of the author's experiment were that it was impossible to satisfy each of these time allocations flawlessly , but they did come close enough in each area to notice a positive difference in the overall feel and mood of their day . What all of the above suggests is that managing your day is not wholly art , nor wholly science , but rather a combination of both . A suggestion that also applies to investing , which too often investors attempt to reduce to entirely art or entirely science . Investing undoubtedly involves numbers , calculating returns on investment or the various mathematic measurement tools designed for assisting with analysis . But the incalculable element of investing is human behaviour , which isn't calculable , not even for the smartest of the most intelligent humans . In fact , Sir Isaac Newton , an English mathematician , astronomer , theologian , author and physicist managed to secure a profit by identifying an investment bubble and exiting his investment . However , he couldn't avoid temptation when the price kept rising irrationally and he reinvested , but at three times his original investment amount , only to lose it all and go bankrupt . He summed up his experience with , " I can calculate the movement of stars , but not the madness of men " . The question then is how do we blend both art and science when investing ? This can be through choosing an asset that ticks the financial boxes to be regarded as ' quality ' and then exerting the discipline to hold when the temptation of ' the next big thing ' crosses your path . It can even be as simple as practicing patience and staying invested across all market cycles so that you receive the benefit of compounding returns . While we wait for scientists to crack the formula for the best investment ever , much like the findings of the author's experiment , applying a little of both science and art towards your investments should deliver a positive difference . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi GriffinPrivate Wealth www.bgprivatewealth.com.au AW7447697