Why This Simple Strategy in Life and Investing is Underrated

Ever heard of the saying “Money for old rope”? 

Years ago people would acquire or were given old damaged rope. They would peel it into strands and re-sell the strands. “Easy money” they would say.

However, simple does not always equal easy.

There is one simple strategy in life and investing that is very underrated. Why is something so simple overlooked? It's because it takes time and a lot of it. The strategy is patience.

Let me guess you're disappointed. Were you hoping for a silver bullet answer?

Have you ever witnessed someone lose 20 pounds in three days. Of course not, at least not in a healthy way. However, how often have we seen someone or ourselves try to lose weight only to give up all too soon.

Our need for immediate gratification takes over from simply being patient. It happens all the time in investing and life. Make small improvements each day in your diet and exercise routine (compounding) and stick with it for an indefinite amount of time (patience). Simple, but not easy.

Compounding small events over long periods of time can result in fantastic outcomes.

“Compound interest is the eight wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” - Albert Einstein

Einstein was no doubt a smart cookie. Who knows if he actually said this however. 

Here’s another quote from an equally smart man.

“Time is your friend, impulse is your enemy. Take advantage of compound interest and don’t be captivated by the siren song of the market”. - Warren Buffett

Oh the good ol’ yammering of a couple old fellows. Timeless stuff though. To compound on what Buffett and Einstein are saying (see what I did there), patience is what is required to allow small things to compound into great outcomes.

Buffett has a mind blowing amount of money. How long did it take him to build his wealth? Only 77 years. Now that’s patience. Try sticking with investing for that long, heck try sticking with it for half that long and see how well it pans out.

Patience doesn't mean do nothing or just spend time waiting.

How about building a business or attracting clients. “If you build it, they will come” worked for a fictional baseball movie that took place in the corn fields of Iowa, however a long-term mindset, hard work and consistent patience are what builds most successful enterprises.

What about Michael Jordan, we all know the story of how he got cut from his high school basketball team. He had the patience to stick with it and we know how that worked out.

Commitment requires patience.

Dedication requires patience.

Passion requires patience.

Investing requires patience.

So if patience is such an important factor for success in life, why don't more people give it the credit it deserves. That's because simple does not equal easy.

If you were given the worlds greatest investment strategy or asset allocation to invest your money, would it work without patience? I think you know the answer.

Disclosure: The information on this site should not be considered advice or solicitation to buy or sell any securities. Please see my Disclosure Page for a full disclaimer.