Patience… There are four major factors that lead to investment success:

• A good strategy
• A focused goal
• Controlled costs
• And patience

Today I would like to concentrate on patience. The biggest reason for failure to achieve satisfactory results is a lack of patience — especially when faced with exaggerated negative news. A million years of evolution has conditioned us to flee danger. Staying the course is very hard. The average mutual fund holder earns only about half of the fund’s returns. Fund holders buy high and sell low. One of the main goals of financial advisors is to discourage buying high and selling low.

I am subject to the same stresses. I counter them by remembering three quotes:

1. “This too shall pass away.” — Medieval Persian poet, popularized by Abraham Lincoln
2. “When all else fails, men will be reasonable.” — Author unknown
3. “When the news is so bad that you want to sell all your stocks, do it. Right after you sell your home.” — My own thought.

More on the other factors in the following months.

Sincerely,

Katz Family Financial