I’m constantly coming across articles predicting impending recession, hyperinflation, devaluation of currencies and the like. Maybe the news media are having a slow month – no global economic disaster to have us glued to our TV’s or purchase magazines, so they have to dig out some so called expert that raises the question of or predicts impending disaster. (Please refer to April’s Newsletter which linked to an article of 36 ‘experts’ predictions over the last 5 years.)
I have no idea whether we will experience inflation or hyper-inflation, devaluation of currencies, or whatever other economic malaise the financial press can come up with. I do know that regardless of what we actually experience, we’ll muddle our way out of it – because that’s what we’ve done for hundreds of years.
Successful investing has little to do with intelligence – it’s more about faith, patience, and discipline. Faith that shareholder value will continue to increase because on average the men and woman running the businesses we invest in have always succeeded to earn more than they have risked. Patience because the market often does not reflect true value of a business and we must wait for our returns. Discipline to continue to invest (or stay invested) regardless of the immediate demands on our funds.