No matter how great the talent or effort, some things just take time; You can’t produce a baby in one month by getting nine women pregnantWarren Buffet
Indeed it is true.
Whatever you do in life, whether you want to become a successful investor or succeed in blogging, there are several traits that you must possess. And, patience is above and beyond all the other traits that you need to possess to have a greater impact on the final results.
When we were kids then we were told many stories to explain the fact that patience is an asset. But, with time, we tend to forget this lesson and try to hurry to get things done quickly. There are many instances that we see around us in daily life on people run out of patience whether it is jumping out of queue or honking continuously in traffic.
Often, we tend to be impatient because as human beings, we’re not born patient and are even designed to react to the threats either real or superficial. You must have heard of the “fight-or-flight” response – here you either attack or run away whatever helps you to relieve the threat. The same also extends to investment where we often look for instruments that offer high returns in short term or hurry in making a decision.
Being an investor, patience is your biggest asset. But, it can be difficult for an investor to master this skill particularly when you’re focused on short-term goals.
Simply put, it is hard to be patient as our brain makes it really hard to patient.
Let me explain this with an analogy. Let’s say you’re offered your favorite ice-cream and you’re given two options:
- Option A: Eat it right away
- Option B: Receive three ice-creams if you wait for another hour
What will you do? Will you choose Option A or Option B?
Well, if I were you then I would definitely choose Option B because if I’m getting to eat three ice-creams just for waiting then why not?
Isn’t it good deal?
And, the same goes for investment. You got to be patient if you want to earn more money and save more for the future.
Exercising patience in investment is similar to watching the grass grow in your garden
As Benjamin Graham puts it, “In the end, how your investments behave is much less important than how you behave.”
Benjamin Graham who is known to be the father of value investing knew how important patience is in investing.
It may be intimidating to focus on short term results and that is a human tendency as well. However, this may hamper your progress towards long-term goals limiting your potential of your financial portfolio. To be a successful investor, you need the nerves of steel.
It’s easier said than done but with practice, you can master the technique to be patient and become a successful investor. You can learn to be patient in investment in many ways…
- Stop for a moment and think – “Do I really need this right NOW?
- Exercise self-control to avoid from being tempted to make the decision.
The Final Verdict
If there is one thing that we’ve learnt from the pandemic in the 2020, then it is that we need to learn not to be impatient. That means controlling your emotions and thinking from long-term perspective considering that the market is volatile.
In short, if you want to succeed in investing then you need to be patient and keep yourself calm so that you can use this to your advantage.
“Wealth is a transfer of money from the impatient to the patient.”Warren Buffet