Through consulting calls and networking conversations with newer investors, one pattern emerges consistently. Many investors lack clarity about what they are looking for in a deal.
Some pursue impossible deals: 30% IRR, 10% cash-on-cash returns, complete liquidity, and zero risk. These opportunities do not exist. If they did, institutional investors would jump on them before individual investors ever saw them. These investors use the absence of perfect deals as justification to avoid all opportunities, waiting indefinitely for criteria that no investment can meet.
Other investors chase whatever sounds appealing without considering how it fits their portfolio. They move from crypto to precious metals to office buildings to self-storage to farmland to ATMs to oil investments. These may represent sound or poor opportunities, but no coherent strategy guides their selection. Without a vision for their portfolio, they follow current trends and hope outcomes align with their undefined expectations.
Experienced investors operate differently. They have established a personal investment thesis that provides a framework for making decisions. This thesis answers two fundamental questions: What am I trying to accomplish with my investments, and how am I going to do it? It functions as a financial compass, allowing you to assess whether an opportunity aligns with your strategic goals while conserving your most valuable resources: time and mental energy.
The Value of a Clear Investment Thesis
A well-developed investment thesis delivers benefits that extend beyond time savings. With a clear thesis, you gain confidence to make decisive commitments without second-guessing. You eliminate fear of missing out because you understand which opportunities serve your goals and which merely distract from them. You build a portfolio that functions as a cohesive system rather than a collection of disconnected positions. Most importantly, you transform from a reactive capital provider into an intentional investor making deliberate choices about your financial future.
Without an investment thesis, you waste hours evaluating opportunities that were never appropriate for you. You ask others for opinions because you lack a decision-making framework, but you cannot provide them enough context to offer meaningful guidance. You either remain paralyzed by indecision or accumulate a random assortment of investments that fail to work together toward any meaningful goal.
A Systematic Approach to Building Your Thesis
I have written about creating a personal investment thesis in previous newsletters. As we enter 2026, I have condensed those articles into a single resource. This free e-book provides a systematic process for developing your investment thesis through three essential steps: establishing your investment goal, clarifying your investment strategy, and determining your tactical approach.
By working through this process, you will possess a framework that allows you to evaluate investment opportunities quickly and confidently. You will be able to build a portfolio designed specifically to help you meet your goals, customized based on your specific strategy.
The e-book, “Establishing Your Investment Thesis”, walks you through each step with concrete examples. You will learn how to establish a guiding philosophy that reflects what you want to accomplish, not what others tell you to pursue. You will clarify where you stand on critical dimensions including risk tolerance, investment timeline, cash flow needs, active involvement, and required returns. You will determine which specific tactics align with your strategy and circumstances.
This is not abstract theory. The framework helps you make real decisions about real opportunities. When a syndication crosses your desk, you will know within minutes whether it deserves deeper evaluation or immediate elimination. When a friend suggests a new investment vehicle, you will understand whether it complements your existing portfolio or creates unwanted complexity. When market conditions shift, you will recognize which adjustments serve your goals and which represent emotional reactions to volatility.
Taking Action
The difference between investors who achieve their financial goals and those who accumulate random positions comes down to intentionality. An investment thesis transforms you from someone who invests in whatever sounds interesting into someone who builds a portfolio designed to accomplish specific objectives.
If you are ready to develop your own investment thesis and gain clarity about your investment decisions, download “Establishing Your Investment Thesis” today. The e-book provides the complete framework, along with examples and exercises to help you implement each step.
In an abundant world, there are many paths to success. Your path to financial freedom begins with clarity about what you want to accomplish and how you will get there.
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The complete set of newsletter archives are available at:
https://www.mbc-rei.com/mbc-thoughts-on-passive-investing/
This article is my opinion only, it is not legal, tax, or financial advice. Always do your own research and due diligence. Always consult your lawyer for legal advice, CPA for tax advice, and financial advisor for financial advice.