A King was well-known for his efforts to improve his people’s living conditions. A button on his shirt broke one day while he was in a village. The button was quickly stitched by a tailor. “How much should I pay you?” the King asked. “Maharaj, it was a small job,” the Tailor replied. I can’t take your money.” When the King insisted, the Tailor thought to himself, “I should only ask for Rs.10, but what if the king is testing me and feels disrespected?” “You give me whatever you think is right,” the tailor said after much deliberation. Now that the King had to give according to his status, he gave him two villages as payment for his work. The tailor reasoned, “I was going to ask for INR10 for this, but the King gave me ownership of two villages.”
We frequently limit our wealth-creation efforts to short-term possibilities. We are concerned about long-term uncertainty because the path is fraught with adversity (volatility). However, in retrospect, the market/funds can provide multi-bagger returns over longer periods of 20-25 years. How many of us were able to catch this rise? Markets, like the king, can distribute enormous wealth, but most investors tend to cash out too soon, missing out on larger wealth creation opportunities (had they been patient). The tailor did not inquire, instead waiting for the king to provide. So, rather than trying to time the market, stay invested and build wealth over time. A mile of highway will only get you a mile further, but a mile of runway will get you really far to any destination. Take the runway instead of the highway.