If you are really into value investing, you should, hopefully by now, understand that buying and owning stocks can be akin to marriage. It is not about buying today, selling tomorrow. Or instant gratification. Or short term happiness. It's about long-term commitment, going through thick and thin together, sharing your lives.
Here's the list of comparisons. Enjoy!
Stock and spouse
1. Both are meant to be enduring life-long affairs.
2. Both require a lot of due diligence before committing to achieve happiness.
3. If you have made a good choice, the relationship only gets better over time.
4. You wouldn't admit it's a bad investment until it's too late.
5. If you've got a real gem, you can always show your friends and feel proud.
6. It's always better to start looking early in life. But not too early, teenagers reading this blog, sorry teenage = too early.
7. It's unwise to dismiss potential targets when there are only minor flaws bcos good ones are hard to come by.
8. And really, the super good ones are very hard to come by.
And here's the treat of the day!
Stock vs Spouse
1. A stock doesn't care if you surf net all day and didn't spend quality time with it.
2. A stock won't leave you for another sweet young thing.
3. A stock doesn't care if you look at other stocks.
4. A stock doesn't occupy 70% of your bed and SNORE.
5. A stock always look good in the morning, without make-up or grooming, even after 10 yrs.
6. A stock is never interested in how many stocks you have in the past.
7. You can still buy a stock even if you don't have a car, 2 condos, 3 country club memberships and 5 credit cards, well you do need a few thousand dollars though.
8. A stock doesn't need a diamond ring (with increasing carat) every 24 months.
9. A stock doesn't throw a big tantrum if you forgot the 15th anniversary of the day you two first met.
10. You don't have to visit the stock's Mum, Dad, 3 Aunties 6 Grandmas and 14 Uncles EVERY WEEKEND.
11. A stock will never complain about your cooking or your spending or anything about you for that matter.
12. A stock doesn't care if you make more money that it does.
13. A stock gives you dividends every year, usually you give your wife shopping allowance every week.
14. A stock gives you dividends every year which usually grows even bigger over time. Chances are not high to find a husband who can match that, esp if he is reading this blog.
15. When you decide to part ways with a stock, it doesn't go around bitching about you.
16. When you decide to part ways with a stock, it doesn't claim ownership of 50% of your OTHER ASSETS.
But a stock cannot give you a massage when you need it, a shoulder to cry on, share your joy and laughter, love you and care for you in sickness and in health.
And that's why Spouse still wins.
Here's the list of comparisons. Enjoy!
Stock and spouse
1. Both are meant to be enduring life-long affairs.
2. Both require a lot of due diligence before committing to achieve happiness.
3. If you have made a good choice, the relationship only gets better over time.
4. You wouldn't admit it's a bad investment until it's too late.
5. If you've got a real gem, you can always show your friends and feel proud.
6. It's always better to start looking early in life. But not too early, teenagers reading this blog, sorry teenage = too early.
7. It's unwise to dismiss potential targets when there are only minor flaws bcos good ones are hard to come by.
8. And really, the super good ones are very hard to come by.
And here's the treat of the day!
Stock vs Spouse
1. A stock doesn't care if you surf net all day and didn't spend quality time with it.
2. A stock won't leave you for another sweet young thing.
3. A stock doesn't care if you look at other stocks.
4. A stock doesn't occupy 70% of your bed and SNORE.
5. A stock always look good in the morning, without make-up or grooming, even after 10 yrs.
6. A stock is never interested in how many stocks you have in the past.
7. You can still buy a stock even if you don't have a car, 2 condos, 3 country club memberships and 5 credit cards, well you do need a few thousand dollars though.
8. A stock doesn't need a diamond ring (with increasing carat) every 24 months.
9. A stock doesn't throw a big tantrum if you forgot the 15th anniversary of the day you two first met.
10. You don't have to visit the stock's Mum, Dad, 3 Aunties 6 Grandmas and 14 Uncles EVERY WEEKEND.
11. A stock will never complain about your cooking or your spending or anything about you for that matter.
12. A stock doesn't care if you make more money that it does.
13. A stock gives you dividends every year, usually you give your wife shopping allowance every week.
14. A stock gives you dividends every year which usually grows even bigger over time. Chances are not high to find a husband who can match that, esp if he is reading this blog.
15. When you decide to part ways with a stock, it doesn't go around bitching about you.
16. When you decide to part ways with a stock, it doesn't claim ownership of 50% of your OTHER ASSETS.
But a stock cannot give you a massage when you need it, a shoulder to cry on, share your joy and laughter, love you and care for you in sickness and in health.
And that's why Spouse still wins.
I dont agree that stocks are meant to be enduring life-long affairs. Anyway interesting article.
ReplyDeleteIf we are talking about trading, then everything that is said really doesn't apply. Trading should be more analogous to like ONS or short fling.
ReplyDeleteThe analogy only applies if one subscribe to the value investing philosophy. If one really believes in value investing, one should really approach buying and holding stock like marriage.
Even so, the analogy is not perfect. You can't really talk about "til death do us apart" with stocks.
Buffett has some stocks that he deemed he will not sell no matter what some years back. But he still did. Of course for most of them, either he buys out the whole co. bytaking in private or he really didn't sell at all.
Even for investment, I do not agree that it has to be long term. When economy is moving downwards, we should keep out of stocks.
ReplyDeleteLooking from http://thefinance.sg's website, seems like most investors are losing money.
In my view Forex trading is the key to wealth management for the next 3-4 years.
Well there are different definition for long term I guess. Look out for my next few posts and hope you find some insights!
ReplyDeleteNice article. Adding on to your analogy, one should be going into the 'commitment' with eyes fully open and ready to accept all 'consequences'. Like marriage, cutting lost or divorce is already a lost cause.
ReplyDeleteHi Market Uncle,
ReplyDeleteThanks for dropping by. Yeah, you are absolutely right, cutting loss is easy, divorce is much harder I guess...