Many people think investing is this exciting process where there is a lot of drama. Many people think investing involves a lot of risk, luck, timing, and hot tips. Some realize they know little about this mysterious subject of investing, so they entrust their faith and money to someone they hope knows more than they do.
Many other so-called investors want to prove they know more than other people. . . so they invest, hoping to prove that they can outsmart the market. But while many people think this is investing, it is not what investing actually mean. Investment actually is a plan, often a dull, boring, and almost mechanical process of getting rich.
Investing is simply a plan, made up of formulas and strategies, a system for getting rich. . . almost guaranteed. Unless, of course, you want it to be that way or you think that is the way investing has to be, so there will be risky for it. But in the really world, investing is as simple and boring as following a recipe to bake bread.
Because following a simple plan to become rich is boring, human beings are quickly bored and want to find something more exciting and amusing. That is why only three out of a hundred people become rich. They start following a plan, and so they are bored. So they stop following the plan and then they look for a magic way to get rich quick. They repeat the process of boredom, amusement, and boredom again for the rest of their lives. That is why they do not get rich. They cannot stand the boredom of following a simple, uncomplicated plan to get rich.
Most people think there is some magic to getting rich through investing. Or they think that if it is not complicated, it cannot he a good plan. Trust me; when it comes to investing, simple is better than complex.
Find a Formula That Works and Follow It
Find a formula that will make you rich and follow it. I am often disturbed when people come up to me and start telling me about the stock they bought for $5 and how it went up to $30 and they sold it.
I find myself disturbed because those kinds of stories distract from their plan, their success such stories of hot tips and quick cash. Many investors are like a family taking a drive in the country. Suddenly, on the road ahead of them appear several large deer with massive horns. The driver, usually the male of the household, shouts, ‘Look at the big bucks.’
The bucks instinctively bolt from the road and onto the farmland alongside the road. The driver veers the car off the road and begins chasing the big bucks across the farm and into the trees. The ride is rough and bumpy. The family is screaming for the driver to stop. Suddenly, the car goes over a stream embankment and crashes into the water below. The moral of the story is that this is what happens when you stop following your simple plan and begin chasing the big bucks.”