Avoiding the overwhelming bias for action
In life, we have a natural bias for action. From a young age, we are told stories about heroes who overcame great odds and many setbacks to do something great. Sportspeople, entrepreneurs and leaders are all lauded for their actions. ‘Watching and waiting’ are rarely considered valuable. However, there are times when the most valuable thing you can do is to wait for the right opportunity. In the face of the relentless pressure to do something, waiting patiently is often extremely difficult to do. This same scenario holds true in the world of investments.