4 unexpected investing lessons from 7-year-old learning to solve Rubik’s cube

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investing. The cube has 43 quintillion combinations, and if you stare at it long enough, you will find it mind-boggling. Similarly, even investors with several years of experience and expertise find investing challenging.

A Rubik’s cube has multiple interconnected parts; one wrong move can take you back to square one. Investing is similar – myriad factors, such as inflation, currency, interest rates, company profits, company management, etc., hold sway over investment success, and one wrong investment decision may lead to significant losses. No wonder those who crack the code, i.e., solve the cube or become successful investors, are raised to a pedestal, and treated as geniuses.

Does this mean that if you are not a genius, all your attempts at solving the cube or investing are in vain? Fortunately, no. Building muscle memory is essential to succeed: Practice. Practice.

Practice. Solving the cube on your first try would be nearly impossible. You need to keep practising, learn tricks along the way and build muscle memory such that it eventually falls into place.

Investing world parallel: The same principle applies to investing. Investors and advisors who spend decades investing develop muscle memory that makes them better investors. Their expertise stems from having gone through similar trends multiple times over decades – and they can leverage this experience to distil noise while advising clients.

Rule-based approach: In the Rubik’s cube realm, there is a stark contrast between a structured approach—often termed 'algos'—and haphazard, erratic steps. Unsurprisingly, the structured approach is a clear winner. These 'algos' offer a streamlined path, enabling swift progression through the cube's complexities and eliminating