Today’s world is pacing on faster growth. In this speed era, investors are preferring for instant gains within shorter period! But is it possible at all times?
Though the world is changing faster, we have to give sufficient time to our investments, but how many of us waiting for the long term? To profit from short term movements, many of us are doing “Trading” instead of “Investing”.
This is due to lack of patience and if you are one among them; you have to know the story of Chinese bamboo tree which will taught us the importance of staying invested for the long-term.
Chinese Bamboo Tree Story–
Once there lived a poor farmer who depends entirely on his cultivated land. He sowed some seeds including Chinese Bamboo tree seeds as a part of his agriculture activity.
He used to provide urea, water sufficiently. All his crops sowed and reaped the benefits except This Chinese Bamboo Tree! But he never loose faith and keep on watering for several years.
To his surprise, this tree couldn’t sow even an inch even after 4th year. This time, the farmer looses faith slightly blaming his foolishness to plant the bamboo tree for 5 years.
He went to his home and returned to his farm land and surprisingly he found that the Chinese Bamboo Tree has grown to 3 feet a day and keeps on growing to 90 feet in just 6 weeks.
There is no bound to the farmers happiness to see such a tall tree(90 feet)in just 6 weeks of the 5th year!
This is the true story and one can apply this Chinese Bamboo Tree story into one’s own investment strategy.
Entering and Exiting the shares watching the short term price movements would loose out to huge capital appreciation in the long-run. Instead if you have patience and stayed for the long term like the farmer does, you will see magical figures in your portfolio.
This applies to Mutual Fund sip’s too! Exiting the schemes thinking that your investments are not fetching good returns is a big blunder you are making to your portfolio. Mutual Fund sip’s takes its own time to reap the compounding power in your portfolio. It may take minimum of 4-5 years to see exponential growth in your mutual fund sip’s. If you interrupt the compounding power your returns may hurt.
So be patient and keep on investing for the long-term. Applying the theory of Chinese Bamboo Tree would do wonders to your portfolio if you are patient!