Once a renowned fund manager told me that for two years, he made no investments at all. The US markets were overpriced and good deals were hard to come by.
For those two years, every day, he would dress up in the morning and go to office. He would sit and read reports. Sometimes, he would meet a friend for lunch and then go back home in the evening. But he did no investments for two long years.
If you are an investor, that can be scary. It is like an Olympic athlete not participating in a competition for two years – almost unthinkable.
But later, when the markets became more reasonable, he did many deals.
This investor was on the Forbes Midas List for many years.
On the other hand, I have also seen investment professionals whose frenetic activity will put bees and ants to shame. And sadly, the more they work, the more value they destroy.
Investing rewards you for thoughtfulness; for hitting the target, not for firing the maximum number of bullets.
And this is not just true about investing, but also for most of knowledge work.
Busyness does NOT equal value creation. Our random activity may fool some people but reality can’t be fooled.
Slow down. Take a pause. Aim before you shoot. But when you shoot, don’t miss.
– Rajan
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