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Patience; The Ultimate Virtue November 19, 2015

Posted by shaferfinancial in Finance.
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We live in a society that keeps moving faster and faster. We want instant success and make instant judgements, labeling people/strategies a failure in short time. I read a Florida State University football blog on a regular basis, and posters are constantly writing off these athletes as a bust if they don’t play like All-Americans in their first couple years on the team.

I see the same in youth sports. If the kids aren’t instant stars, dominating at an early age, then the adults in their lives push them to move on to other sports/activities or consider it just recreation and lower their expectations to “its a lifetime sport.” In school, if they aren’t immediately making great grades, reading at college level at age 10, or doing Algebra in 5th grade, then we need to get them tutoring.

But read the biography of successful people and you see a different line to their success. Failure after failure until finally success. I am reading a biography of the Wright Brothers that is demonstrating this.

And of course the opposite happens. Early success is assumed to mean that elite status will follow. In youth sports, we see that all the time. The kid that is 6 ft. at 13, is assumed to be on his way to being an elite athlete because he can dominate his smaller competition. The person who gets great returns on a stock pick is assumed to have some better technique for picking stocks that will last forever.

But reality is something different. US swimming has been looking at how many top youth swimmers become elite senior swimmers. It is pretty easy to document in swimming because the competition is about the stop watch [or electronic timing now a days]. So US Swimming looks at the top 10 times of 12-13-14 year olds and compares that to participants in senior nationals, junior nationals, NCAA, world competitions, etc. over the following years. So how many of those top youth swimmers end up as top senior swimmers? 10% for men and 19% for women.

What does that tell us? 1. We can’t determine who will go on to become elite athletes until after puberty. 2. You can’t tell who will become great by just looking at them. There is something there that can’t be predicted. Same with good investors. Can you name great investors over the long term? There is probably a couple of handful of folks you could name.

So what is the most important personality trait in all this? Patience. That’s right, those 90% of boys that were not considered elite swimmers during their formative years kept on going to swim practice. They kept on working. They didn’t allow someone else to tell them they weren’t good enough. And they had coaches that did the same thing. They didn’t rush their development, didn’t move these athletes to the bench, didn’t spend all their resources on the few who were looking great at age 12.

If you come to our retirement income seminar, you will hear the same thing. We have folks from different parts of life, some with incredible success already, some just starting out. But, the one thing we preach is put a plan in place and show patience.

And we try to eliminate the noise that might cause a lack of patience or a panic for our clients.
Like a good coach, we nurture folks through the process, giving them all our time no matter how successful they are when they come to us, because we know some of the most meager beginnings become our greatest successes; like the Wright Brothers.

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