Like marriage, investing can be tricky. It has its ups and downs but the key to success is perseverance.
In marriage, life, and investment matters, when things get rough and we feel things beginning to fall apart and failure is imminent, quitting is easy.
Perseverance is the one trait that allows us to pull ourselves up by the bootstraps and keep going. History is full of examples of successful figures who only gained success after persevering.
Here are some highlights:
- Henry Ford – Henry Ford failed five times in previous businesses before founding Ford Motor Company and innovating industrial production with the assembly line.
- Harland Sanders – Before becoming Colonel Sanders, Harland Sanders was rejected by 1,009 restaurants before finding a buyer for his world-famous fried chicken recipe.
- Walt Disney – Disney and was fired from his first job at the Kansas City Star because ”he lacked imagination and had no good ideas.” He went bankrupt after failing at several businesses before founding the Walt Disney Company.
- Albert Einstein – The name Einstein is synonymous with genius, but that wasn’t always the case. Einstein was a late bloomer. His parents and teachers thought he was mentally handicapped and socially awkward due to that fact he did not begin to speak until the age of 4 or read until he was 7. Einstein was eventually expelled from school and denied admission to Zurich Polytechnic School.
- Thomas Edison – I took 1,000 tries before Edison got his first electric lightbulb to work.
Successful investors invest with a long view. Unlike stock investors who buy and sell on a whim, smart investors think long-term. It’s because they know long-term investments will be more rewarding in the long-run if given the chance to grow.
Savvy investors are not only drawn to investments with long lockup periods, but they insist on it. Smart investors think long-term because long lockup periods prevent them and their investing partners from making rash decisions and cutting bait too soon.
The ultra-wealthy know that in the long-run, assets with intrinsic value deliver some of the best risk-adjusted returns of any asset class.
Investing long-term allows the law of averages to play out. Being in an investment for too short a term can mean catching the brunt of a downturn without seeing the benefits of a rebound.
The ultra-wealthy have always been attracted to long-term investments for the host of advantages quick fix stocks and speculative investments like cryptocurrency can’t provide.
Some people have to be reminded of why they fell in love in the first place to remind them why their marriage is worth fighting for. With investing, investors sometimes have to remind themselves of why they turned to cash flowing assets in the first place.
Here’s a refresher:
- Consistent Cash Flow. Long-term income-producing assets provide periodic cash flow essential for compounding wealth through reinvestment. Investing for the long-term also allows a business or asset to develop and mature to become a cash machine.
- Appreciation. Cash flow isn’t the only source of return for investors in productive assets. Appreciation also adds value to certain assets but investors must let the business plan and execution play out over the long-run to allow growth.
- Low Risk. Despite periodic short-term downturns; Long-term productive assets are relatively safe investments. With the right business plan, reliable management, and the necessary time to carry out the plan, a productive asset can become the asset that keeps on giving.
To the victors go the spoils but to reap those spoils, sometimes it takes climbing high mountains and crossing turbulent rivers to get there.