- Investors begin to get impatient
- They are tempted to chase after the returns of whatever investment is in favor at the moment, after all, it must be better than the investment that has been going sideways.
- They sell out of the holding.
- They miss the next run up in the position because they were not invested in it!
How valuable are those missed days? Take a look at the following chart from Blackrock that shows the difference:
On a $100,000 investment in the past 20 years and missing the best 25 days, results in 300K less money for you! It’s really important to remind yourself that a pause in the action is normal and your will eventually be rewarded for your patience. Don’t clown around!