Most investors never sit still
I was never one to sit still. At church, school, and even while I was eating or sleeping, I would squirm and wiggle like a worm, constantly making excuses to get up and get out! To this day, I can vividly remember my mom saying, “Patience is a virtue.” Patience is a what? I thought. It sure didn’t sound like anything I needed, and off I went!
It wasn’t until I started my investing career that I learned the real virtue of being patient. In fact, I admit I learned patience the hard way—by making my move on a stock way to early or way to late, many a time.
The most difficult decision an investor has to make is when to buy, sell, or hold a stock. Although it goes with-out saying, making a great investment decision requires extensive research, learning essentially everything possible about the company: its products and services, innovation, research and development activities, management and their operating habits, numbers, statistics, and every little financial detail, the company’s history, present and future outlook, affiliations, setbacks, and so on and so forth. Buying a stock may be the easiest part of the investing equation, but that’s only if you’ve exercised due diligence.
After you have patiently analyzed a company forward and backward and then again, the next major hurdle is deciding when to buy and at what price. Once again patience plays a key role here.