All the best things in life require consistent effort
If you seek to be healthy, develop healthy habits. Consistently eat well, exercise regularly, and incorporate meditation or stillness into your routine. The healthy habits you develop while you’re young, keep you strong as you age.
Healthy habits for Financial Gain
The philosophy of forming great habits through consistency translates to personal finance as well. A well-planned investment strategy includes consistently contributing deposits from a young age allowing for a powerful accumulation of wealth. With regular contributions, you are compounding your portfolio and setting up for a prosperous future. As Warren Buffet says, “Compounding is the most powerful force in the universe.”
With investing, it is often misunderstood that big wins are the prize to strive for. This strategy is speculative and has a low probability of success. There are too many choices and too many unknows about the future to rely on picking the one big winner that will deliver the results you seek. Even if you happen on the needle in the haystack, you have to be willing to endure huge swings in value which is beyond the resolve of most individuals. In fact, most individual stocks provide poor long-term returns. A broadly diversified portfolio makes sure you cast a wide net that is more likely to contain some, or all, of the big winners. The best performing handful of stocks drive an outsized share of stock market returns. According to a study by Dr. Hendrik Bessembinder out of Arizona State University, the best performing 4% of listed companies in the US are responsible for the entire gain in the U.S. stock market since 1926. Therefore, the goal shouldn’t be trying to predict the one winner in the haystack; it should be making sure you buy the entire haystack.
There is no short cut to being fit, or building and maintaining loving relationships, or building wealth. Success comes from consistency over long periods of time.
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