Patience is not something I’m known for. “Hot-headedness” runs in my family. It’s a result of wanting to be in control and being overly competitive. I’ve learned to recognize this and to somewhat get it under control, but I definitely have my moments!
We often associate social or relational issues with impatience, but there can be economic costs as well. Farnam Street talks about the cost of impatience in their weekly blog:
“Impatience is an expensive emotion. Every app wants your decision in seconds. Every employer wants results this quarter. Every investment platform profits when you trade. Meanwhile, the boring investor who indexed and touched nothing decades ago owns your neighborhood. Who’s winning? The patient inherit everything the impatient leave behind.”
Many of the good deals I’ve come across have been because the seller was impatient and wanted their money right away. They didn’t care if they took a hit, they just needed the capital. Their impatience easily cost them 10 to 20%, and in some instances, much more.
In the same way, when I got tired of trying to market my grassfed beef and took some steers to the sale barn in a down market, they stole them. A little more patience and I could have sold them for a good margin.
I’m not saying we should sit on our hands and wait for things to get better, but there has to be some middle ground. Some things demand immediate action while others would benefit from some patience. I like the idea of putting a cost to patience. In most cases, being patient pencils out better.