In the video below, VAM highlights the importance of patience as investing is about long-term compounding.
Here are a few reasons why being patient will save you money:
If you've selected the right investments, you will always be rewarded with patience.
The patience required for investing is a vital part of financial discipline and shows how well you can check your emotional state, greed, and manage money to achieve your goals. The idea here is to select worthy assets at a reasonably good price.
Trying to time the market is a futile exercise.
You may lose out on an attractive investment opportunity if you keep waiting for the price to reach the bottom. Do note that even if the investment is available at a higher price, it may still be worth buying if it has the potential value to grow higher in the future.
When you invest in an avenue, stocks or mutual funds, keep in mind that it takes time for any business to grow and generate profits.
Therefore, it would not be wise to be bothered with what happens in the short-term, as long as you've made the right investment decision.
If you have selected research-backed assets, your investments will overcome this low phase and generate improved returns over time. In the meantime, your non-equity investments will provide stability to your portfolio.
Though long-term holding of investments is important, it would be imprudent to just buy and forget about it.
You need to review your portfolio at least once a year to track the performance of your investments. The review will enable you to find out if you should continue with the investments or if there is a need to weed out any non-performing ones.