Every time Spring rolls around, I think about the similarities between gardening and investing. The ground is warming up and the spring rains will help soften and nourish the ground so that when we plant our seeds (investments), the environment is right for them to grow.
Currently the Stock Market is down which is a great time to buy seeds (investments) for the future. March closed down a quarter and Spring just may be ready for a nice rebound.
Selecting the investments for the garden of your future reminds me of a Chinese Proverb: “The best time to plant a tree was 20 years ago. The second-best time is now.” That holds true for any kind of investment. If you’re just beginning to invest you probably couldn’t have done it 20 years ago. But, by starting now, you can look back 20 years from now and appreciate the growth of your garden or very likely, your lush forest. Especially when you take advantage of the buying opportunity that exists now, continue to plant and maintain your plot (portfolio).
Like any good garden, some work is required to put together the right combination of financial positions in a portfolio just like it requires knowledge to put the right kind of flowers, herbs and vegetables in your garden. It’s also important to keep an eye on your portfolio in order to weed out any weak or distressed plants. You may even need to add a little fertilizer from time to time.
Another similarity between gardening and investing is the need for patience. If you go out the day after you plant your seeds and expect to see a lush garden, you’re going to be disappointed. Be patient. Keep your portfolio properly designed and actively maintained, giving it time to mature and you will be blessed with a beautiful, vital garden that can feed your dreams well into the future.
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