In portfolio management, the tendency is to chase. We chase performance, always judging ourselves against a benchmark and making huge efforts to outperform. If something is not working, we fix it immediately. If something is going well, we double-down. But markets have a way of tricking us – they entice us to chase, though it only hurts us in the end. And this is no different than life itself.
Financial markets taught me that, in the end, the spoils go to those who are patient. It turns out the investors who stop rushing and stop needing results overnight are the ones who eventually succeed. It turns out that ultimately only patience and consistency matter in the seemingly instantaneous and cutthroat world of risk and return. It turns out that no single huge effort will solve your problems. It turns out that consistency, itself, is the huge effort. And it turns out – whether trying to be healthier, kinder, calmer, or just more true to yourself – that markets yield great wisdom for all of our lives.
Be patient with your money and your life. The consistency is the huge effort.