Soon kids will be at the door with that familiar phrase, “Trick-Or-Treat!”
These little ghosts and goblins running amuck through your flower beds can teach us a thing or two about investing too. Don’t underestimate how clever they can be. Since Halloween and Trick-Or-Treaters are a big part of our traditions in America, I tried to think of something creative.
So here are a few investment lessons you can learn from Trick-Or-Treaters:
1. Persistence Pays. Rarely have I ever seen a seasoned Trick-Or-Treater give up before the goodie bag is full. Just like with door-to-door candy solicitation, persistence pays with your investments. Having the fortitude to let your investments work and consistently investing over time will pay dividends in the long run.
2. Avoid Dark Houses. When I was a kid Trick-Or-Treating, we didn’t visit a house where the lights were not on. I’ve even taught my kids that little piece of information. Just like you avoid a poorly lit home at Halloween, you also avoid investments that have little or no information available. Information is king in the investment world, so why use an investment if you know so little about it?
3. Check Your Candy. My parents would always check the candy that I had collected. I diligently look at the candy my kids brought home when they were Trick-Or-Treating. So what’s the lesson here? Check your investment regularly. Not every hour, but do some research and make sure you know and understand what you own.
4. Don’t Go Alone. I don’t know of any Trick-Or-Treater that goes house to house alone. They all run in packs like wolves! Just as no Trick-Or-Treater goes alone, no investor should go it alone. Having a competent, experienced and conflict-free advisor is essential. It’s a scary investment world out there, and having a little company will make the journey a little less horrible.
So there you have it, your Trick-Or-Treater lessons in investing. So this year when the little fright monsters come to your door, drop an extra piece of candy in their bag and thank them for the investment lessons they taught you! Happy Halloween.