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Patience

Patience

October 04, 2022

Patience 

As interest rates continue to move higher while investment portfolios of great companies currently trend lower, I wanted to reach out in order to revisit one of our foundational principles: Patience.  

During difficult market periods such as the one we currently find ourselves in, we are under constant pressure—mostly by the financial news media—to do something. However, reacting to the movement rather than staying patiently focused on your long-term financial goals can derail even the best of plans.  

In fact, studies have shown that the more often investors change their portfolios, the lower their returns went. When markets are falling—even when we steadfastly maintain our faith in the future and in American Capitalism—it can be difficult to stay patient. The risk of losing one’s patience and selling out of their quality long term investments increases proportionately with the magnitude and duration of the downturn. As Warren Buffett has famously said, “The stock market is a highly efficient mechanism for the transfer of wealth from the impatient to the patient.”  “Impatience” may seem like an understatement in describing investor emotions during times like these. (Fear may be a more appropriate description).  Therefore, it is important to remember that emotional decisions lead to poor investment outcomes.  Whether you are feeling fearful or just a bit impatient in this current environment, I encourage you to set these emotions aside and stay patient in order to avoid making emotional decisions. It is critical to do so in order to have lasting investment success and achieve your financial goals.  

I would like to leave you with the mantra of patience as described by Nick Murray: “I don’t know when it’s going to turn out all right. I just know that it is going to turn out all right.”      Stay patient my friends!  

If you would like to discuss your personal circumstances with me or anyone else on the Parker Advisor team, please do not hesitate to email or give us a call at (208)337-3271.  

Sincerely,  

Gavin S. Parker