This is Milly. Our 4-month-old chocolate lab puppy. Milly loves going on walks, finding sticks in the yard, and chewing on whatever she can find when we aren’t watching….
In our unbiased opinion, we’re convinced that we have the best dog to ever set foot (or paw) on Earth. But my future wife Sarah and I quickly learned that having a puppy is no walk in the park (somehow Milly’s ears perked up as I typed “walk” and “park” in the same sentence). Milly has been teaching the both of us a lot of patience. Learning how to “sit”, to go to the bathroom outside, and finally getting her to realize that, no, the baseboard is not a chew toy, took a lot of time (evidence below). I am confident that she hears the word “NO!” more often than her own name.
The Crime The Criminal
While it can be frustrating, we have started to see that our patience is paying off. It is a rewarding feeling when she performs the trick that we had been working on for weeks, or when she finally leaves our shoes alone instead of picking them up as she walks by. We’ve realized that we were ridiculous in thinking that our puppy would immediately behave like a well-trained adult dog after only a few short weeks. All we needed was a little patience to let Milly get older and start to learn the world around her.
Patience is important in many aspects of life, including investing. It is something that we have frequently been telling clients as we navigated a difficult 2022 for markets. Checking statements and seeing that your account is down over the course of an entire year is frustrating. You start to think that things will never turn around, and that one year starts to feel like a lifetime. But I can assure you that it isn’t. Since 1957, the S&P500 has an average rate of return of roughly 10%. Within that time, it has experienced years where it was down 29.72%, 38.49%, and most recently, 19.44%. Someone who was patient and didn’t panic during those years continued to reap the benefits of investing. Someone who became impatient and pulled out of the markets when things seemed like they would never return to normal? Not so lucky.
The best investors are the most patient. They stay the course and stick to their plan. We constantly remind our client’s that their portfolio is designed to fit their time horizon and objectives. We are not going to waver when everything seems like it is falling apart, only make tactical adjustments that are appropriate. Having a MASTERPLAN as a guide helps the client, and us, stay focused on their goals ahead. Losing patience would only disrupt that path forward.
We could all use a reminder about the importance of patience, and Milly provided me just that. Thanks Milly, there will be a few extra treats for you tonight!