99% of investing is all about preparation, but the remaining 1% can make or break your portfolio. Here’s why!
about investing because we believe diving into this activity can help you attain wealth creation and achieve true financial freedom. Today, we’re thrilled to share with you another investing insight that lots of great investors have benefited from throughout their careers. Continue reading to know why you need a great deal of patience in investing.
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99% of investing is all about preparation, but the remaining 1% can make or break your portfolio. Here’s why! Surfing is a sport that requires a great deal of practice, lots of physical exertion, and more importantly, lots of patience. Most of the time spent in the sport is used for preparation. Surfers have to get their equipment ready, have their board waxed, put their wetsuit on, and wear their ankle straps. Then, they have to spend time paddling out to the right distance to catch a strong wave. It can’t be just any wave, though. It has to be the right one. To sum it up, surfing is an exercise in patience—a quality that great surfers have.
Patience is a trait the best investors have too. Allow me to explain… In investing, 99% of the work is done before an investor hits “buy.” The prep work starts with finding great companies that have a high Uniform return on assets (ROA) and plenty of tailwinds to keep boosting returns for several years. Then comes the waiting game. Investors tend to be quick at recognizing good companies so these firms rarely come “cheap.” Great investors know that buying at the right time matters, so they keep a list of stocks they want to own at the right price. Afterwards, they wait for someone willing to sell. However, every once in a while, investors lose focus and let great stocks get cheap. This usually happens when the market panics during a recession… and while the market is about to approach one of those moments, most stocks aren’t there yet. Today’s market is still filled with stocks hitting new highs every week, meaning there’s not a lot of “cheap” buying opportunities out there. This brings us to another trait you should have as an investor: Being ready to seize an opportunity when it arises. It doesn’t matter when it’ll happen, but when you find an opportunity in the market that can’t be ignored, you must seize it. You can bet that’s what investing legend Warren Buffett will be doing when the time comes. At present, Buffett has USD 168 billion in cash—the most he’s ever held in his career. It is safe to assume that he has certain stocks in mind for that money. He’s just waiting for the right wave of opportunity to come before he goes all in. Our bottom line here? When a similar moment comes for your portfolio, you shouldn’t hesitate to pull the trigger on the opportunity. You never know, that wave of opportunity just might be the game changer you’re looking for. Hope you’ve found this week’s insights interesting and helpful. Stay tuned for next Wednesday’s The Independent Investor! The Great Recession of 2008 to 2009 was the worst economic downturn in the U.S. since the Great Depression. Learn more about how you can create MASSIVE opportunities amid a market crisis in next week’s article! |
about investing because we believe diving into this activity can help you attain wealth creation and achieve true financial freedom. Today, we’re thrilled to share with you another investing insight that lots of great investors have benefited from throughout their careers. Continue reading to know why you need a great deal of patience in investing.
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99% of investing is all about preparation, but the remaining 1% can make or break your portfolio. Here’s why! Surfing is a sport that requires a great deal of practice, lots of physical exertion, and more importantly, lots of patience. Most of the time spent in the sport is used for preparation. Surfers have to get their equipment ready, have their board waxed, put their wetsuit on, and wear their ankle straps. Then, they have to spend time paddling out to the right distance to catch a strong wave. It can’t be just any wave, though. It has to be the right one. To sum it up, surfing is an exercise in patience—a quality that great surfers have.
Patience is a trait the best investors have too. Allow me to explain… In investing, 99% of the work is done before an investor hits “buy.” The prep work starts with finding great companies that have a high Uniform return on assets (ROA) and plenty of tailwinds to keep boosting returns for several years. Then comes the waiting game. Investors tend to be quick at recognizing good companies so these firms rarely come “cheap.” Great investors know that buying at the right time matters, so they keep a list of stocks they want to own at the right price. Afterwards, they wait for someone willing to sell. However, every once in a while, investors lose focus and let great stocks get cheap. This usually happens when the market panics during a recession… and while the market is about to approach one of those moments, most stocks aren’t there yet. Today’s market is still filled with stocks hitting new highs every week, meaning there’s not a lot of “cheap” buying opportunities out there. This brings us to another trait you should have as an investor: Being ready to seize an opportunity when it arises. It doesn’t matter when it’ll happen, but when you find an opportunity in the market that can’t be ignored, you must seize it. You can bet that’s what investing legend Warren Buffett will be doing when the time comes. At present, Buffett has USD 168 billion in cash—the most he’s ever held in his career. It is safe to assume that he has certain stocks in mind for that money. He’s just waiting for the right wave of opportunity to come before he goes all in. Our bottom line here? When a similar moment comes for your portfolio, you shouldn’t hesitate to pull the trigger on the opportunity. You never know, that wave of opportunity just might be the game changer you’re looking for. Hope you’ve found this week’s insights interesting and helpful. The Great Recession of 2008 to 2009 was the worst economic downturn in the U.S. since the Great Depression. Learn more about how you can create MASSIVE opportunities amid a market crisis in next week’s article! |
