Post
Topic
Board Economics
Re: Effect Of Delayed Gratification On Investment Outcome.
by
Fortify
on 20/08/2022, 11:08:29 UTC
To delay gratification is in my belief; to forego consumption today for greater prosperity tomorrow or better put, delay today's enjoyment for tomorrows benefit. The benefactors who stick to their strategy, have more consistent performance over time. By finding ways to embolden ones own discipline by either looking away, or by holding your long throat, one can use similar tactics to do the same thing as an investor. Think out a plan. Write it down. Set up automatic deposit or dividend reinvestment plans.

Does it therefore mean that the outcome of an investment can be determined in advance when we delay enjoyment/gratification?

Your last question implies that you can predict the future, but it's not really that easy. We can only make a best guess at future outcomes based on all previous scenarios and the amount of data that is available to analyse. Looking at the stock market for instance, we see that over the last hundred years it has returned on average between 6-10% per year but it is slowly trending downwards. There is a lot of data available, it also shows that there is a recession roughly every 8 years and a correction roughly every 2-3 years. If you're talking about Bitcoin, we only have roughly 13 years of information to work with and that is very little in the grand scheme of things. So if you stick with the stock market and buy the right investment products, you have a good idea of what will happen but the same certainty is not available for cryptocurrency.