Chinese Bamboo Tree-Investment Concept

January 17th, 2024 Latest Blogs

Chinese Bamboo Tree-Investment Concept

Warren Buffett once quoted, “Someone’s sitting in the shade today, because someone planted a tree long ago.” It is never too late to start investing, but the earlier, the better. If you want to enjoy the shade of a big tree, you need to plant the seed today!

Chinese Bamboo Tree

There is a great lesson of patience & persistence which can be learnt from the story of planting Chinese bamboo. When Chinese bamboo is planted, watered, and nurtured for the whole growing season.

# Year 1: Nothing emerges from the ground in the first year. it does not outwardly develop even just for an inch in first year.

# Year 2: Still, you wouldn’t spot any outwardly growth. 

# Year 3: The story continues with still no signs of life emerging from the soil.

# Year 4: And so, it happens in the fourth year as well. 

# Year 5: All the hard work seems to be paid off; A miracle happens. Within six weeks, it rises to a stupendous height of 90 feet. Or tall enough to match a nine-storied residential building of a metropolitan city. This is a very astonishing demonstration of the power of nature!

Think for a moment.

#Does the Chinese Bamboo Tree really grow 90 feet in six weeks?

#Did the Chinese Bamboo Tree lie dormant for four years only to grow exponentially in the fifth?

#Was the little tree growing underground, developing a root system strong enough to support its potential for outward growth in the fifth year and beyond?

The answer is obvious. Had the tree not developed a strong unseen foundation it could not have sustained its life as it grew. The same principle is true for your investments.

Your Investment in Equity

Just like a seed, growth of invested money takes time and patience. To find success in investing, you must invest prudently and then have the patience to let it grow.

Investors who seek quick and easy returns on their investments are generally not successful and they don’t create a wealth. By understanding the process behind long-term investing, a mature and patient investor can avoid excess risk and become financially successful.

NSE Nifty is up 14 times in 25 years, Average Doubled time is close to 2 years. NSE Nifty journey from 1,107 to 22,000 points mark in the last 25 years. Since inception in 1995 Nifty has given annualised returns of 14 percent.

Learning from Chinese Bamboo Tree

#The longer money remains invested there is compounding magic in the portfolio

#When time is on your side, it is not necessary to sell an investment when the value has gone down

#Long-term success comes not by reading the daily financial headlines, but by being patient and sticking to the well-designed financial plan.#Understand as investors, we are nurturing our own Chinese Bamboo seeds and desired outcome is to achieve the goals by systematic investments in a discipline manner.

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