Investing, a Life Skill: #1, Delayed Gratification is Easy, & Hard
“Investing is not always the easiest path, but make it a habit, and time in the market will be your greatest strength.” - Gill & Horner Wealth Management Philosophy
Jeff Bezos asked Warren Buffett: "You are the one of the richest men in the world and yet you have the simplest investment thesis. How come others do not follow this?" To which Mr. Buffett replied: “Because no one wants to get rich slowly.” This is what slowly for Mr. Buffett looks like.
Delayed gratification is one of the most challenging aspects of investing, but the effect of delaying when you start is also too great to ignore. Invest early and often, and time in the market is your greatest strength. The chart below shows the growth that is potentially lost by waiting to invest in your future.
This is not a recommendation to buy a security, and is shown for illustrative purposes only. Past performance is no guarantee of future results. Source: JP Morgan Guide to the Markets. Actual returns will vary based on additional factors.
Experience matters, and we have learned that no matter what we think we know, life will surprise us. Income will rise and fall. Family circumstance will evolve. Through all of these changes, maintaining the habit of saving and investing should be a top priority. Investing is not always the easiest path, but make it a habit, and time in the market will be your greatest strength.
