be patient

I tell my kids all the time: "Be patient", "Patience is a virtue" and "Good things come to those who wait".

Investment people always talk about being patient and holding stocks for the long term. How come the stats don't back it up? The chart below is from Finimize and shows the average holding period for US stocks has gone from 8 years in the 1960s to less than 6 months today!

In that time we have evolved to have knowledge at our fingertips and be up to the second with new information. I'm not sure how much that has translated into better investment results.

How to observe if someone really has patience?

1. They are usually calm under pressure
2. They are usually a good listener
3. They are usually highly tolerant
4. They are usually very consistent

Next time someone tells you they are 'patient' run through this checklist quickly to see if it correlates with their usual behaviour.

Finally, if you have kids and are reading this, you will know that not only is it hard for children to obtain patience (especially kids under 6) but it's almost impossible for the parent to model patience with their kids!