In the 2016 movie Arrival, a linguist named Louise Banks is recruited by the military to learn an alien language that even the brightest minds on earth are unable to interpret. The story mixes ominous sci-fi themes with a personal arc interwoven in cut scenes that seem incongruous at times, but that ultimately reveal something surprising about the nature of reality. Without giving away too much, Louise eventually learns that language wires our brains in a way that shapes our perception of time. And when one learns to speak and think in a new way, standard ideas we all take for granted like the linear nature of past, present, and future no longer seem so set in stone.

While it makes for a cool movie, viewers may be surprised to learn that the core concept is based on actual psychological phenomenon. The way we speak, write, and think affects how we interpret the world around us. From the implicit framing bias we subtly insert into discussions by the words we choose to the linear performance charts that flow from left to right like our natural western language, words not only have meaning. They influence the way we think.

When discussing investing and the nuances of backtesting methodologies, I have come to learn that some of the concepts are hard to explain to everyone. It’s not that it’s rocket science. I think sometimes it’s just a new language that not everyone understands, and the thought process it nurtures takes time to sink in. Like moving from a sentence written from left to right to truly understanding the timeless circular ink blots on the window, it’s more than just about knowledge. It’s about how our minds work.

So if you’re interested in getting a glimpse through the glass to a different way to perceive investing numbers, grab some popcorn and find a comfortable chair. This article is for you.

I have a good friend whose son is an accomplished golfer. Beyond the natural fatherly pride that he feels, there are also moments of awe where a wisdom borne from years of practice sneaks through in ways that you may not expect from such a young person. For example, when asked how he got so good at golf, his son replied with this (paraphrased) all-time gem:

Hole-in-ones are mostly luck, so I don’t fixate on hitting great shots. I practice minimizing my miss.

That’s not just solid advice on the golf course, but also a remarkable philosophy to live by.

It also struck home with me, as my investing philosophy is a little different than what you usually see in popular finance. Promoting trite “5 easy ways to maximize your returns” is a lot easier than explaining nuanced concepts involving uncertainty. But the idea of “minimizing your miss” is a great metaphor that brings the range of outcomes to the forefront. Wise investing isn’t about always swinging for the flag, but staying on the fairway.

The cool thing about working in visuals is that there are a few good ones that demonstrate this investing philosophy particularly well. So let’s hit the driving range and talk about the mechanics and benefits of consistent investing.

Like millions of other Elden Ring fans, I’ve been spending many hours recently killing everything in sight in the new Shadow of the Erdtree expansion. For anyone not familiar, Elden Ring is a popular videogame in the RPG genre that is a wonderful combination of beauty and lore requiring a lot of skill, strategy, and patience to master.

That skill and patience requiring thoughtful stat allocations may ring a few bells, as it shares a lot of parallels with investing. I wrote about that perspective last year when I discussed Asset Allocation for Gamers, but Elden Ring hits hard on an especially important concept that I think is underserved in many investing circles — the risk of ruin.

So if you’ve spent many frustrating evenings like me getting repeatedly wiped out by a certain flame serpent, let’s talk about avoiding the same fate in the markets.

My news feed recently contained a trio of interesting articles that had little to do with finance but shared a theme that is quite universal — the failure of the best of us. But rather than the typical stories of deliberate fraud and tragic mistakes that are sadly all too common, these are a more nuanced grouping that taken as a whole offer an interesting perspective on something many of us take for granted.

Expertise.

So if you think you have everything figured out or have hired the smartest minds to do it for you, read on. You may learn something new about risk and adjust your expectations in the process.