We are always taught that the more effort we put in the more we will get out of life, but this is not always true.
Take sleeping for example. You can prepare in the right way. Put yourself in a right position and get yourself comfortable but after that you can’t force it to happen right. In fact it works exactly the other way around. The harder you try, the less sleepy you become. Its only when we stop trying that you finally drift off. And before we know it, we waking up the next morning feeling refreshed and relaxed after a good night sleep.
“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant” – Warren Buffett
This is a very similar idea when you are investing for the long term.
A good metaphor for this, is the idea of taming a wild horse. If you think on how a wild horse is tamed. Rather than pinning it down in one place, the horse is let out on a very long rope and put in a big open spacious field. The horse runs around feeling like it has all the space in the world. But very slowly the rope is brought in and the horse adjusts its feeling until it comes to a natural place or rest.
And we looking to do just the same with investing. Rather than to pin down all the bad news article we come across. Rather just let your investment philosophy come to its natural place of rest (watch it play out patiently) because we all know the idea of mean reversion and that’s one certainty I can assure you. Markets will be cyclical and mean reversion is inevitable, therefore providing many opportunities for you and I.
So let go of the idea on needing to achieve results quickly in the short term or have price targets for shares in a limited time period (we always see 12 month targets from many analysts) and instead seek more opportunities where you can buy good quality businesses at a fair price (or even cheaper compared to their intrinsic value if you’re lucky) then sit back, relax, and be present in the world.