This Kid’s Story Will Change Your Perspective On Patience
This Kid’s Story Will Change Your Perspective On Patience

Many years ago, I came across a story of a kid who pooled his savings with his sister not to buy sweets or toys like every other kids. Instead, he bought a few shares of an oil company, Cities Service, at $38 per share.

At such a young age, to have the confidence to go all in on his savings together with his sister’s, to me, that was between genius and insanity. But then again, he was only a kid.

Photo by Micheile Henderson on Unsplash

Within the first few months, because of many uncertainties, the stock dropped almost 30%. However, the kid was confident and firmed with his decision despite his sister’s constant harassment about the money they lost.

Finally, the stock recovered to $40 a share and the kid sold the stocks to make his profit.

Lesson #1: There will always be people panicking and headlines telling you to sell. That is because they may not have done enough due diligence before investing into a business. The key is to have confidence in your decision regardless of external noise that comes in your way.

After selling the stock, the kid continues to monitor the stock from the sidelines. With so much regret, the kid saw the stock soared from $40 to $200, but it was already too late.

Lesson #2: Confidence alone takes you nowhere. Patience is a virtue. Sometimes in life, you will come across great undervalued stocks, but it takes a while for the market to reach the same conclusion. So, be patient. As a wise man once said, “If you’re not willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” Well said!

Oh yes . . . Thankfully, this kid is a quick learner. Learning from this unpleasant mistake, the kid is now 89 years old, with a net worth of over $89 billion. And his name is Warren Buffett.

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