Rules Of A Smart Fund Manager Part 7: Patience Is A Virtue

Based on our blog ‘7 Rules Of A Smart Fund Manager (That Everyone Should Follow)’, we’re running a week long series spending a little more time with each rule, so you can easily digest each and every tidbit! #SharingIsCaring

You’ve definitely heard the phrase ‘Time is money’. It’s so clichéd, in fact, that I remember it was quoted by Sahil in ‘Kyunki Saas Bhi Kabhi Bahu Thi’ once. I clearly lacked better things to do with my life at the time.

But as with most clichés, there’s a basic truth behind it. A fund manager knows an investment will take time to generate returns. Not only that, but the longer the investment is held, the more returns it has the potential to generate, due to the magical effect of compounding (explained in gory detail here). Sometimes, short-term volatility is the price for long-term growth. Professional managers know all this, and use it to their advantage.

The lesson? Rome wasn’t built in a day. Money doesn’t grow on a tree (Even if it did, it’d be seasonal. Unless you’re in a rainforest. In which case, you probably don’t have much use for it anyway). Per some random guy named Warren Buffett, “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

Wherever you choose to invest your money, be patient. It may be a while before you see growth. Nothing will grow your money overnight.

7 Patience Is A Virtue