With all the changes and fluctuations in the stock markets and investment portfolios, we’ve received a number of enquiries as to whether to dis-invest or stay put. It’s at times like these that an investment coach is important. A coach can be defined as someone who inspires you to do what you need to do (and may not want to do…) so that you can be your very best.
Let me begin by saying that the most important principle when investing is to keep investing. Great investors are people who believe in saving... for life!
Investors are those who are committed to the long haul; they buy, and hold. Investing should look past retirement and even past your own life expectancy, unless you know your own expiry date (in which case you can time your last cent to that very last moment!).
If we look at the long term BIG PICTURE - we are able to see past all the emotions. All too often we are distracted and make short-term calls based on fear and greed.
When you keep investing and stay invested in the markets you will, like in life, have overcome many obstacles but your investment, despite losing and gaining many times over, will have compounded and, historically; grown considerably.
Although returns, costs, diversification and tax efficiency are all important considerations when investing; the most important investment quality is the emotional intelligence called PATIENCE.
Patience is known as a virtue because most people only start being patient at the point that their patience runs out. Patience, like maturity, is the ability to resist immediate gratification or the knee jerk reaction to fear and greed.
So our advice is this - stay put. Don’t try and time the markets - don't get caught up in sentiment and bad news - keep investing and buying good shares and in time your brave and patient approach to growing wealth will reward you with compounding, compound interest.