Answer is the 'Eureka moment'!
If it were not for Archimedes' quiet thinking in the bathtub, we would be still wondering why a body of mass submerged in water displaces the same volume of the liquid.
But even with all his brilliance, the ancient Greek mathematician did not discover the Archimedes' principle with any hectic mathematical experiments or overnight calculations. It took him years of thinking and observing to come across the right conclusion one fine day. And that moment was his 'Eureka moment'.
If he were born in the 21st century, the urgency, hustle and hectic activity to come to conclusions would have at best helped Archimedes point out the Greek banks that are about to go bust. But he would have hardly come close to his path breaking discovery.
The problem is that as with our lifestyle, hectic activity and instant results are equated with success. So if you are an investor in a rising market, not indulging in regular buying and selling of stocks could be making you feel left out. Worse still, being told to be careful in buying high PE stocks and looking for cheaper valuations could be a test of patience for you. After all, in the pressure of quick results, you perceive the absence of 'activity' in your attempt at creating wealth as a big dampener.
Now it is not just Archimedes, but every other genius who has had a brush with the Eureka moment, has toiled for it over years. Coming back to investing, Buffett and Munger, the two individuals who manage the fund that has an unbeatable track record, have together read more annual reports than any other soul on earth. They continue to do so without worrying whether they will come across their Eureka moment the next morning. All they are concerned with is whether they will be a shade smarter the next day. Needless to say the day they decided to invest in companies like Coca Cola, Washington Post, Wells Fargo, Walmart and American Express were mini Eureka moments for them. For these very investments helped Berkshire multiply investor returns hundreds of times over the decades. But these geniuses never set a timeline for themselves for the multibagger returns. All they ensured that the goal was set right and they were disciplined about it.
As Buffett said, "We do not get paid for activity. We get paid for being right".
Thus consistent buying of stocks irrespective of valuations may not necessarily lead you to your goal. Nor is it that you should stop reading about companies that interest you for fear of valuations. It could be months and years of pursuit in finding the stocks that suit your long term portfolio. But the Eureka moments, though difficult to come by, will certainly make the big difference to your life.
If it were not for Archimedes' quiet thinking in the bathtub, we would be still wondering why a body of mass submerged in water displaces the same volume of the liquid.
But even with all his brilliance, the ancient Greek mathematician did not discover the Archimedes' principle with any hectic mathematical experiments or overnight calculations. It took him years of thinking and observing to come across the right conclusion one fine day. And that moment was his 'Eureka moment'.
If he were born in the 21st century, the urgency, hustle and hectic activity to come to conclusions would have at best helped Archimedes point out the Greek banks that are about to go bust. But he would have hardly come close to his path breaking discovery.
The problem is that as with our lifestyle, hectic activity and instant results are equated with success. So if you are an investor in a rising market, not indulging in regular buying and selling of stocks could be making you feel left out. Worse still, being told to be careful in buying high PE stocks and looking for cheaper valuations could be a test of patience for you. After all, in the pressure of quick results, you perceive the absence of 'activity' in your attempt at creating wealth as a big dampener.
Now it is not just Archimedes, but every other genius who has had a brush with the Eureka moment, has toiled for it over years. Coming back to investing, Buffett and Munger, the two individuals who manage the fund that has an unbeatable track record, have together read more annual reports than any other soul on earth. They continue to do so without worrying whether they will come across their Eureka moment the next morning. All they are concerned with is whether they will be a shade smarter the next day. Needless to say the day they decided to invest in companies like Coca Cola, Washington Post, Wells Fargo, Walmart and American Express were mini Eureka moments for them. For these very investments helped Berkshire multiply investor returns hundreds of times over the decades. But these geniuses never set a timeline for themselves for the multibagger returns. All they ensured that the goal was set right and they were disciplined about it.
As Buffett said, "We do not get paid for activity. We get paid for being right".
Thus consistent buying of stocks irrespective of valuations may not necessarily lead you to your goal. Nor is it that you should stop reading about companies that interest you for fear of valuations. It could be months and years of pursuit in finding the stocks that suit your long term portfolio. But the Eureka moments, though difficult to come by, will certainly make the big difference to your life.
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