For this post, I am going to share a story that totally changed my way of investing.
Time for Story-Telling
This story is about the Chinese Bamboo Tree & if you haven’t seen it before…
This is what it looks like:
But do you know how long it takes for the giant bamboo to grow to this height?
On the first year, the seed is planted on the ground, careful watered and fertilized. Some other plants would have emerged from the ground after a few days but not for the Chinese bamboo.
Despite you continuing to water and fertilize the same spot, NOTHING happens for the whole 1st year.
The 2nd year comes, you undergo the same process — still NOTHING.
Same thing again for Year 3 and 4 and yet NOTHING again!
However, a miracle happens on the 5th year!
The Bamboo Tree emerges from the ground and takes the only six weeks to get from the ground to 90 feet (almost 28 meters).
In short, it takes the Chinese bamboo 5 long years to grow in the ground and only 6 weeks to get from the ground to the height of 90 feet building.
What I and You can Learn from this Story
Invest in Bamboo Trees! (nah, just joking =D)
This Story shows us the power of being patient especially when it comes to Investing.
Stocks can sometimes stay ‘dormant’ for long periods of time (underloved) and just shoot up >100% in a matter of weeks.
Just look at the recent examples:
- KSH Holdings (SGX:ER0)
- AEM Holdings (SGX:ER0)
They are almost flat or even drop over the 5-year period only to soar through the roof! Granted, the astronomical share price gains are mainly attributed to some positive news that act as growth catalysts.
That said, the point that i want to drive across is that share prices sometimes don’t perform the way you want in the short term as the market is irrational!
However, as long as you are patient and continue to hold on to your investment (water your bamboo plant), it is a matter of time that the gains will come to you provided that the company fundamentals are sound.
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