The Hare (investor) and the Tortoise (investor)

The fable about the race between the hare and the tortoise is one of
the better known amongst Aesop's fables. These fables not only provide
entertainment to young children, but usually end with a moral that has
relevance for adults.

But does the fable have any relevance to the world of investments? To
find out, let me recap the story:-

The hare once ridiculed the tortoise for its slow pace. Upset, and
knowing the frivolous nature of the hare, the tortoise challenged the
hare to a race. The hare promptly accepted the challenge.

On the appointed day, the race began and the hare was off and running.
As it came near the finishing point, it decided to rest a bit and soon
fell fast asleep. The tortoise, way behind, was slowly but surely
plodding along. It didn't stop even once, and kept right on going with
its measured steps till it got near the finishing point. The other
animals that had gathered to witness this incongruous race, started to
cheer.

The noise woke up the hare. It realised that the tortoise was about to
reach the finishing point, and made a mad dash to try and win the
race. But it was too late. The tortoise won. The moral of the fable?
Slow and steady wins the race.

Is investing a race? Yes, it is. The race is against time, which
doesn't stand still. Remember the saying, time is money? The more time
you can spend in making money, saving money and investing it
appropriately, the more money you will have for your enjoyment and old
age.

When we are young, we tend to be frivolous about our money. And our
time. We spend both on useless pursuits - haring off after a inside
tip or, a sure shot winner or, a great swing trade opportunity. We end
up losing money and wasting time.

In one investing lifetime, only a handful of bull and bear markets can
be fully utilised for generating large profits. To be able to do that,
you need to do your homework, develop proper strategies, and have the
discipline to stick to stop-losses. Otherwise, you will choose exactly
the wrong times to enter or exit the market.

As we grow older, we tend to value our time and money a lot more - may
be because we do not have enough left of either! So, to be successful
as an investor, don't be like the hare. Don't run after get-rich-quick
or multi-bagger schemes. One fine day, you will realise that the slow
and steady tortoise-like investing can amass a lot of wealth through
sheer discipline and the ability to stick to a plan....

nice way to sign out....