As fundamental investors, we seek to obtain more value than we are paying for. To do this, it is helpful to be patient and maintain a long-term viewpoint. Patience is a scare attribute in modern day investing and hence, it is one of the most valuable differentiators. There are two key investing benefits from patience:

1. Patience to wait for the “fat pitch”- Most investment ideas are mediocre, or worse. The reality is that the most compelling opportunities that also fall within your circle of competence don’t come along that often. But when they do, you should be prepared to act with conviction. In the meantime, it’s important to stay patient and disciplined until such attractive opportunities emerge.

2. Patience to hold on to your winners – The first rule of compounding is to never interrupt it unnecessarily. It is important stay invested in “compounders” as long as the underlying business value grows at a satisfactory pace and valuation levels do not climb to extreme levels.