Patience often involves staying calm in situations where you lack control.
Being patient is hard. It means overcoming our instincts of fight or flight. We have evolved to take action in the face of perceived danger.
In many situations, action is the answer. Harry Truman said, “Imperfect action beats perfect inaction.”
Having a bias toward action can help entrepreneurs and startups.
But in investing, perfect inaction may be a better strategy in some situations.
With investing, action can translate into selling something. Selling feels like you’re shielding your investment portfolio from further harm. But selling at the wrong time is one of the biggest and most common investment mistakes.
“In the end, how your investments behave is much less important than how you behave.” — Benjamin Graham
Benjamin Graham is known as the father of value investing. He was Warren Buffett’s professor and mentored him at Columbia Business School where Warren got his MBA. He understood the importance of patience in investing.
Patience is the ability to keep a good attitude while waiting.
It also takes patience and discipline not to chase mediocre investment opportunities. Our instinct is to act and deploy a pile of cash. It takes discipline like a baseball batter not swinging at bad pitches and having the patience to wait for their pitch.
Like Charlie Munger, Buffett’s partner, said, “It takes character to sit with all that cash and to do nothing. I didn’t get where I am by going after mediocre opportunities.”
The benefits of investing are typically reaped after many years. It’s letting compounding work its magic. Patience is a behavior where the benefits are mostly long-term. To be patient is to endure some short-term hardship for a future reward.
Warren Buffett considers patience as a defining trait of successful investing. And lack of patience an investing flaw.
The stock market is a device to transfer money from the impatient to the patient.
— Warren Buffett
Siddhartha’s wisdom can help us be better investors by doing less. By doing less we can avoid mistakes by being less wrong.
We can learn to be patient and stick to our investment strategy. We can learn to avoid emotional decision-making mistakes.
Time is on your side.
Share this post
Author, Entrepreneur, & Teacher
Receive my 7 day email course
Take your finance skills to the next level with my 7-day corporate finance email course. You'll learn all the essential topics from financial analysis to risk management in a fun, engaging format. Each day, you'll receive an email with practical examples, exercises and resources. Perfect for aspiring finance pros or anyone looking to expand their knowledge. Get ready to transform your finance game!
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
If you like this article. Here are some more articles I think you might like.
The whole process of funding and developing startups has become more widespread because the cost of getting a product to market has dropped so precipitously in the past couple of decades from millions of dollars to typically anywhere from under $20,000 to $500,000.
To perform effectively in a job and advance to greater responsibilities requires developing a well rounded set of skills. Every job and every industry has its specifics but these skill sets are general and apply across all jobs. Skills are fundamental for turning a job into a career trajectory and this trajectory is part of our personal fulfillment in life.