Patience and investing is a phrase which appears to be an oxymoron.  Let’s face it, many investors are not patient.  It is an only too-common trait of human beings to be impatient when it comes to investing.  

 

Investing can be a thrilling and rewarding experience but it is important to remember that investing requires patience and discipline. Whether you are investing in stocks, bonds, or property, it can be tempting to make quick decisions based on short-term market fluctuations or hype. However, this type of short-term thinking can be dangerous and can lead to poor investment decisions. Here’s why patience is important when investing, along with some inspiring quotes to help keep you focused on your long-term goals.

 

Avoiding Impulsive Decisions

  1. One of the key reasons why patience is important when investing is to avoid making impulsive decisions based on short-term market fluctuations or hype. As the legendary investor Warren Buffett once said, “The stock market is a device for transferring money from the impatient to the patient.” When you invest with patience, you are less likely to make impulsive decisions based on short-term market movements and more likely to focus on your long-term goals.

 

 

Riding Out Volatility

  1. Investing often involves dealing with market volatility and uncertainty. During times of market turbulence, it can be tempting to sell your investments and move to the sidelines. However, as the famous investor Benjamin Graham once stated, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” When you invest with patience, you are better equipped to ride out short-term market volatility and focus on your long-term goals.

 

Taking a Long-Term Approach

  1. Patience is also important when investing because it allows you to take a long-term approach to your investments. As the renowned investor Peter Lynch once noted, “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” When you invest with patience, you can focus on your long-term goals and avoid making short-term decisions based on market speculation.

 

 

Giving Investments Time to Grow

  1. Finally, patience is important when investing because it allows your investments time to grow. As the famous investor John Templeton once said, “The four most dangerous words in investing are: ‘this time it’s different.'” When you invest with patience, you give your investments time to grow and compound, helping you to reach your long-term financial goals.

 

 

In conclusion, investing requires patience and discipline. Whether you are investing in stocks, bonds, or real estate, it is important to focus on your long-term goals, avoid making impulsive decisions based on short-term market movements, and give your investments time to grow. By investing with patience, you can increase your chances of success and reach your long-term financial goals.  You know it makes sense.*

 

 

*Risk warnings

The value of investments can fall as well as rise. You may not get back what you invest. The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. All information is based on our current understanding of taxation, legislation, regulations and case law in the current tax year. Any levels and bases of relief from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. The Financial Conduct Authority does not regulate tax planning. This blog is based purely on personal opinion and experience.