Patience is key to a not too active and not too passive independent investing journey!

Wednesday: The Independent Investor FROM THE DESK OF MILES EVERSON: Generally speaking, patience is a virtue that every person should possess. If you put patience into practice you’ll be better equipped to handle complicated situations. By mastering patience we choose how we react and respond. If you can always respond in a manner of kindness, you will have a higher likelihood of retaining healthy business relationships, acting and responding in a kind manner no matter what the circumstances are. But how do we invest our time in developing the skill of patience? Keep reading to know why patience is a genuine asset and discipline in investing. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

Patience is key to a not too active and not too passive independent investing journey! According to the book, “Investing Disciplines of the Giants,” patience is a genuine asset for making the most out of the other disciplines. Why is that so? It’s because without patience, passive investing would be difficult… The impatient investor would buy too soon (or sell too soon)… … and the impatient will allow himself or herself to be dominated by his or her emotions. See? Patience is indeed a universally regarded characteristic among the investing giants. … and while the discipline we talked about in a previous article―“Controlling Your Emotions”―focuses on NOT doing the negative, this discipline focuses on waiting and fixing your attention on the positive. Let’s take a look at what some of the world’s investing giants have to say about patient investing: Charlie Munger “The big money is not in the buying or selling, but in the waiting.” “Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” John Bogle “The most effective means of building wealth is simply to emulate the annual returns provided by the financial markets, and reap the benefits of long-term compounding.” Jean-Marie Eveillard “Whenever Ben Graham was asked what he thought would happen to the economy or to company X’s or Y’s profits, he always used to deadpan, ‘The future is uncertain.’ That's precisely why there’s a need for a margin of safety in investing, which is more relevant today than ever.” Shelby M.C. Davis “Invest for the long haul. Don’t get too greedy and don’t get too scared.” Seth Klarman “The single greatest edge an investor can have is a long-term orientation.” Jesse Livermore “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals.” “After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this: It never was my thinking that made the big money for me. It was always my sitting.” Warren Buffett “The stock market is a device to transfer money from the ‘impatient’ to the ‘patient’.” If these great investors know the value and importance of patient investing, so should you! Follow these investing giants’ advice and constantly remind yourself as an independent investor of what NOT to do and when NOT to do “it.” Hope you’ve found this week’s insights interesting and helpful. Follow us on LinkedIn.     Stay tuned for next Wednesday’s The Independent Investor! Learn more about the inconvenient truth that is necessary for you to know while investing in the stock market on next week’s The Independent Investor!