Here’s why a successful investor is much like a good farmer

Investing is a lot like farming. You plant a seed, or your money, take care of it, and wait patiently through market cycles. Just like your crops won't grow any faster if you shout at them, your investments won’t yield better returns just because you blame them for not giving quicker, higher yields.

No matter which type of investment we make, it’s our money, and we are responsible. If we make a bad decision, it’s better to recognise it as such, understand what happened, and move on.

Source:Dhirendra Kumar, ET Wealth, August 7-13, 2023

It’s tempting to pull out your money when things don’t look great or returns are low. But just like digging up a plant too early kills it, or just as the crop won't immediately start yielding fruits or vegetables as soon as it is planted, selling too soon can ruin a good investment. If your initial thesis of why it was a good investment still holds, keep holding it. The problem is that most of us start with more hope than reasoning.

Not every plant grows in every kind of soil — and not every investment is right for every person. Choose investments that match your goals, risk tolerance, and time.
Before investing, ask yourself-” What do I want from my investments and, therefore, which type of investment should I choose?’ If the investment is wrong, then it matters little even if it does well. It will still end up not serving your purpose.

Nurture your investments by checking in on them, being patient with them, and removing the ones that aren’t doing well. Along with this, also keep adding better ones to your portfolio to boost your overall returns. Just like watering and fertilising crops helps them grow, periodic rebalancing keeps your portfolio healthy.

You can't control rain or sunshine, just like you can't control the economy or market crashes. But you can be prepared — with a strong portfolio and smart choices. Similarly, there is no way you can control interest rates or war news — but you can control what you invest in and how you react. Don’t stress over things you can't change.
Your portfolio may require periodic rebalancing, and underperforming investments may need to be replaced to keep your portfolio healthy and suited to your needs.