After my previous post on women and investing, I must admit there is one woman beyond my wife that I observe everyday. She is my daughter who is currently three years old and hence, the boss of the house :-).
Is there something to learn from observing her?
If u have a child around the same age or maybe + 2-3 years you will observe a interesting phenomenon. The child has infinite amount of physical energy. It is extremely difficult to restrain the child in a given place or position beyond a few seconds. She is in a constant state of physical motion with arms flaying and legs moving. Try getting a child to do nothing for 10 minutes and u will accept defeat even before you start the task. Getting her to stand still beyond a few seconds is a non starter. It’s like Brownian motion
So the point is
I want to quote Blaise Pascal here. The man I disliked in my engineering days for giving us hydraulics but the man who came up with very interesting insights in human behaviour.
“All human evil comes from a single cause, man's inability to sit still in a room”.
Like the child we crave for activity. Maybe not physically but our brain never stops. It wants action, wants to be in the thick of action and if not anything create action where non exists. The itch to put in the next trade or buy the next stock that you analyse.
And like the child, it really is not in control of its actions.
I have been in the last 15 days working hard to do nothing :-). Caught up on some reading, steered clear of annual reports and spent time thinking.
The title of this post of course comes from a nice song by The Beatles
Nowhere Man
"He's a real nowhere man,
Sitting in his Nowhere Land,
Making all his nowhere plans
for nobody"
10 comments:
Hi Ninad,
Wonderful post and such an important and key concept. Warren Buffett often says how most of his time is spent sitting & waiting rather than trading or following stock prices of his holdings. Personally i feel this happens because of an insecurity of missing out on a stock to see it double or treble and this also makes us hurry through the analysis. Also the Internet makes it hard to stay away as we are constantly looking at a lot of stock ideas and do quick number crunching and jump on stocks without much analysis as the human mind dislikes thinking too much & take shortcuts. I feel implementing a checklist as charlie munger says can help us through this as most of our ideas may fail to pass through and we could stay away from acting. Also thinking like Buffett says of having just 20 trades in a lifetime will make one think hard before jumping on a stock. Though all this is easier said than done.Why do you wan to stay away from annual reports, isn't it a good idea to do some homework on companies one could buy when the price is right?
Hi Siddharth
The reason I stayed away from annual reports was to take time out to read other things or on other topics which tend to suffer bcos of lack of time.
And it makes sense occassionally to reflect on u r thought process, things that u did right or wrong etc. Work on the tweaking u r framework before applying it to analyse balance sheets or deals.
Cheers
Ninad
Hi Ninad,
Good post...as Jesse Livermore said..I made my money not buying and selling...but by waiting.
Hi lazyrao
U r right waiting has made me more money than applying my intelligence to everything.
But then it is as exciting as watching paint dry :-)
Cheers
Ninad
Hi Ninad - On a different subject - Do you have any update on ZENOTECH case?
Supreme Court web site is not updated (or no further activities) after this posting.
Regards
Prashant
Hi Prashant
The hearing is done and the verdict is awaited. There seems to be a quite a bit of delay in the judgement.
So it is going to be a case of wait and watch.
Cheers
Ninad
I'm glad you refrained from quoting the second verse of the song!
Hi Subhankar
Didnt expect too many ppl to know the song, leave alone the second verse.
But let me assure u I do have a point of view :-).
Cheers
Ninad
True. It is easy to keep doing something. We actually need a lot of tempering of our minds to practice 'the Art of doing Nothing'. That needs a lot of practice and control. And many adults don't even have the awareness on this.
Hi Nandhitha
It takes a lot of hard work to do nothing :-). Its a interesting paradox.
Cheers
Ninad
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