My whole portfolio is engaged. My rentals are fully leased. My stocks are purchased and yielding cash. And my EIUL is getting loaded up on a monthly basis while starting to gather credits.
In short, everything’s doing great. But I’m starting to feel the desire to invest in more stocks. I can see the success of my purchases in small bits and pieces, and it creates this desire to get some more stock, to see it grow faster.
This is what I keenly read about in Where are the customer’s yachts? In the book, the author wryly notes how stock brokers make good money selling to clients during booms and panics. But when things are humming along with no excitement, these same brokers do themselves in by not being able to resist “tinkering” in the market. They feel an emotional urge to get in. The problem is, emotion-driven investing is often ruinous.
It’s important to put together a plan. Have contingencies in the event you get another splurge in capital or if part of the plan goes sour. And when you feel emotional drives, cross check them against your plan. But don’t let emotions take over and upset your plan. Warren Buffett along with other successful dividend investors recommend unplugging from daily financial news. Part of this news drives a desire to “feel the pulse” and get active. Are you reading too much? Worried too much about dips in the market? The idea is to invest in solid companies when they are priced right, and then ride them out.
In short, I don’t need anymore stock right now. It’s not the right time. Instead, this is the time to let my plan cruise along as it is. It doesn’t hurt to research options, but don’t do something just because you have a hankering for it. What do I mean by “cruise along”? Perhaps a year from now would be a good time to revisit this idea. And there it is.
Don’t get swept up in trying to get rich quickly. Instead, do boring stuff, like collect rent once a month on your rentals. Collect stock dividends once a month (if you’re lucky), or every three months. But resist the need to speed up the action. If you can’t resist, this isn’t for you.
If you are going to invest in stocks, you have to be able to decide when to get in and when to wait. There is no glamor in getting rich slowly. But that’s the path that is the most likely to succeed. Those who seek to move quickly run a greater risk. Don’t confuse decisiveness with getting rich quickly. After realizing my 401K wasn’t working, I decided quickly and moved towards real estate. It has taken me a year to get that plan in action. But now that that move has been made, it’s time to watch things unfold.