So what is really important in investing? Last week we derided the notion that short-term wiggles and jiggles matter to anyone except people who profit from investor panic.
But what should investors do, then? Strange as it may seem, the best thing that many investors can do to understand the markets is to get out and plant a garden.
You see, planting a garden requires planning, patience, a reasonable amount of work, and a longer term perspective. You need to distinguish between everyday annoyances and real threats that could doom your whole enterprise. It’s a good idea to have a broad variety of different crops out there. And you need to start early and keep at it.
These are all elements of gardening that have a direct application to investing. Planning, patience, discipline, and diversification are critical elements of investing success. But they don’t make for a very exciting show on CNN. And you’ll never see them on the tape feed under the screen.
Douglas R. Tengdin, CFA
Chief Investment Officer
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