Strategic Mediocrity Returns

A framework for achieving long-term investment success through consistent, moderate returns rather than chasing maximum gains.

Core Philosophy

• What matters most is not the best returns you can earn this year, but the best returns you can sustain for the longest period
• Average returns sustained for an above-average time period beats superior returns for a shorter period
• Target 6.5% real returns (after inflation) through index funds
• Focus on being "financially unbreakable" rather than maximizing returns

Strategic Mediocrity Approach

• Aim for average returns by design through index funds
• Build endurance to hold investments for extremely long periods (50+ years)
• Accept being in the middle/average range in any given year
• Goal is to be in top percentiles over decades, not years

Why This Works

• Earning average returns for 50 years puts you in the top 1% of all investors
• Requires zero effort through passive index investing
• Creates "dynastic wealth" that can impact multiple generations
• Allows you to stick around long enough for compound interest to work

Real World Example: PIMCO's Strategy

• Never in top half against peers in any given year
• Always in top decile over decades
• Competitors who beat them in individual years get washed out
• Proves consistency beats short-term outperformance

Key Mindset Shifts

• Focus on sustainability over maximization
• Embrace being average in short term for long-term success
• Remove emotion and effort from investing
• Think in terms of decades rather than years
• Prioritize "unbreakable" over "maximum" returns