Does Long term makes any difference for good returns?? Explained with Story

This story is of Chinese Bamboo Tree, like any other plant it also requires nurturing  (water, fertile soil, sunshine).

But when it comes to its growth 

In its first year, we see no visible signs of activity. 

In the second year, again, no growth above the soil. 

The third, the fourth, still nothing. 

Our patience is tested and we begin to wonder, will it ever grow, are we in right direction???

But the miracle happens finally in the fifth year, yes in 5th year, patience is rewarded. The Chinese Bamboo Tree grows 80 feet in just six weeks! Does the Chinese Bamboo Tree really grow 80 feet in six weeks?  Actually the little tree growing underground, developing a root system strong enough to support its potential for outward growth in the fifth year and beyond. 

The same things happens with investment. Investors has to wait patiently for years for their investments to grow in best stocks to buy, here also for at least 5 years,  short term traders, speculators, lottery winners usually are unable to sustain sudden wealth, loose it back and finally left with loss or nominal reward.

Had the Chinese Bamboo Tree farmer dug up his little seed every year to see if it was growing, he would have underdeveloped the Chinese Bamboo tree’s growth as surely as a premature baby struggle for growth. The struggle in the womb is what gives the future baby the power to sustain. Same way in investment if you daily see the prices of stocks invested for long term for sure you will exit those counters either in fear or greed and will never earn huge returns.

Warren buffet, multibillion investor with a net worth of US $84 billion (June 2018), the third wealthiest person in the world, Earned 99% of his wealth after his 50th birthday and not in few years  or short term.Each passing year is multiplying the wealth of Warren buffet by leaps and bounds.Now even if he does nothing, his wealth will keep multiplying. But do you know he is now 88 and started his investments at the age of 11. 

Big results are never easy, they are slow to show any progress. It’s frustrating and unrewarding at times. But it is worthwhile if we can be patient.

To get good returns we need to stay focused and continue to believe in what we are doing even when we don’t see immediate results. In a fast lifestyle society we get frustrated if we have to wait more than 2 minutes. We want instant solutions to every  problems and issues in professional or personal life. In short – we want it now! 

Sometimes, in our doubt, we withdraw our existing investments and invest  elsewhere, in hopes that it will quickly give returns with no whips off. People change their professions, investments, trades, stocks, relationships, etc. because of this over expectation with no patience. More often than not, these people are greatly disappointed when their Chinese bamboo tree doesn’t grow any faster in the new location.

Investors use to compare their returns with others and devalue their investments. In bull market short terms traders, speculators earn much more than a long term investor with proper money management and soon investor starts feeling I am on wrong track, they have made huge money in small period of time and so finally they change their working pattern and follow them.

Sadly, what they fail to realize is long term investment in stocks is a sure thing if you just don’t give up. So long as you keep investing with discipline, it will come to fruition, just like the Chinese Bamboo Tree. It may even take years, but eventually, the roots will take hold and your Chinese bamboo tree will grow. And your investments  will grow in remarkable way.

We’ve seen this happen so many times. Amitabh bachan had to water his Chinese Bamboo Tree through many failures before he finally succeeded with the King of bollywood. 

With regards to investment keep investing in best Indian Stocks for next 10 years for long termand wait the your returns to grow like Chinese Bamboo tree.

Happy Investing!