Two Farmers, Few Seeds and The Stock Market
Despite not being Warren Buffett, I’m able to make two accurate predictions about the stock market:
- 2020 will be a historic year for stocks alongside with 2008 and 1987.
- The market will be up or down on a the next trading day.
Bit of backstory, I’m a person who dabbles in investing. Far from a pro, I invest to build equity for leverage. This translates to wealth for the ‘me’ in ten years (this author is 21).
My one strategy is simple:
Plant seeds, add water, wait, wait while watching it grow, then harvest.
The metaphor dates to this author’s childhood. Seated on my aunt’s shelf in a small country in Africa, reading a story about two farmers:
They get invited to an Emperor’s New Groove (I mean Palace). He has both farmers compete to grow the most crops in five weeks. The farmer with a better yield cater’s his next feast.
Farmer A: Immediately ploughs the fields. Measures each seed ratio and plants with proximity. Draining every second of that day watering and worrying. He yields some. (day trader)
Farmer B: Immediately ploughs into bed. Throws handfuls of his fine bred seeds across his fields the next morning. Engages the rest of his day with family or tending to better tasks. He yields more. (value investor)
The crops for the confident leads to catering to the Emperor. Replace crops for stocks and the Emperor for yourself.
Remember:
Plant seeds, add water, wait, wait while watching it grow, then harvest.
Pick winners, invest money, wait, wait while it grows, then sell.
