1. Stories are favored in the short-term. Fundamentals outperform such stories in the long-term.
2. We are overly-diversified if we can’t even remember the names of the funds and stocks we hold in our portfolios.
For the initial 5-6 years, Chinese Bamboo Grass doesn’t grow an inch. It requires a lot of nurture, care, water, and soil fertility to grow slowly and expand within the soil. The visible signs of its growth are not noticeable in those initial 5-6 years.
Years of its inactivity scare us and test our patience level. And then, the growth level it achieves in the next 5-6 weeks, is phenomenal. Our tolerance gets rewarded when it grows by 70-80 feet in just 5-6 weeks.
Hard to observe in the short-term. Difficult to ignore in the long-term.