I’m not sure where I first saw this story, but it really does apply to investing in the stock market…
“Once upon a time there was a little tree. He sat in the soil and danced in the wind. And he looked around and saw the other trees. ‘Man, they sure look taller than me,’ said the little tree.
‘Probably it’s the soil,’ he mumbled. So he lifted up his roots and moved over to the part of the garden which he thought had better soil. A few weeks later the little tree looked up again.
‘Drat!’ he said under his breath, ‘the other trees are growing taller than I am. Probably it’s the sunshine. Let me move into where I get more sunshine.’
And so the little tree moved from point to point, always picking up his roots. Always moving. Always searching for the right soil, water, fertilizer, sunshine and other more favourable conditions.
And he stayed stunted.
The trees that stayed in one place built strong roots. Their barks grew solid. Their branches soared. And the little tree stayed little”
Think of that little tree the next time you’re tempted to chase the latest hot stock or sector.
Remember, stick to a good long-term plan and don’t uproot your portfolio to follow the hype. Do the right thing, learn what you need and build a strong portfolio.
That’s how you become a big tree.
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