Most investors worry about their portfolio performance when it’s dreadful. It’s also a good time to worry when performance has been very good.

Why worry when performance has been a lot better than the overall stock market? Isn’t that a time to celebrate and not worry for a change?

It may be that celebration is in order. It may be that you are a genius who’s picks have proven that you are superior to most of mankind. It may be that you have picked one of the truly great money managers.

It’s also possible that you have lucked into a good investment or your style is in favor.

More likely you are taking too much risk. Risk can show up in a wide dispersion of returns. That means sometimes the returns are very very good and sometimes those returns are very very bad.

With good reason, most of us are like Goldilocks. We want our porridge not too hot and not too cold. We want it just right.

Investment returns that are too hot can turn too cold quickly and oftentimes that leads to disastrous results.

Worrying about returns that are too good can save lots of tears later on.