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Patience helpful in investing
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If you are a long-term investor, patience is a good trait to possess. For the most part I am fairly patient and it has helped my investing. One example is the financial crisis of 2008. I was able to keep to my long-term plan by staying invested. In addition, I was able to look for quality companies at reasonable prices. With the downturn it was a bit easier to find such companies. A more recent example is a purchase of the Middleby Corporation (MIDD). Some years ago this company was a recommendation from an investment newsletter I receive. My analysis at that time did not result in a buy signal. I did occasionally recheck as it appeared to be a quality company just not at a reasonable price when I did my analysis. My most recent check found MIDD in the buy zone on my SSG. In addition the company fit into my portfolio diversification needs. I purchased some MIDD. Now I hope I can keep my patience with MIDD and not sell prematurely as the next example shows how impatience can affect you portfolio.
Unfortunately, I do succumb to impatience at times. In late 2010 I purchased some Activision Blizzard (ATVI). After adding to the position over the next 22 months I finally sold the entire position for a small loss. I got impatient for the company to return to results close to past performance and have the price move up. The company was updating their most popular game and introducing another during this time. Results were not bad but not as good as in the past. The price of ATVI started trending up about 6 months after I sold my position. Now almost 5 years after liquidating my position, ATVI sells for a shade more than 5 times my original purchase price. A bit of impatience cost my portfolio an outstanding performer.
Of course, patience alone is not a guarantee of good performance for your portfolio. You still need to do your analysis and keep up with the fundamentals of the companies in your portfolio.
Russell Malley
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Patience helpful in investing
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