One of the best ways to become a better investor is to study topics that have nothing to do with investing. It may sound counterintuitive, but learning lessons from other areas of life often unlocks a “cheat code” for success.
Take parenting as an example. Recently, I came across a fascinating book called Hunt, Gather, Parent by Dr. Michaeleen Doucleff. In it, she shares her experiences as a parent and her journey to remote parts of the world—Africa, Central America, and the Arctic—where she observed children thriving in ways she hadn’t seen in modern Western settings.
Dr. Doucleff was deeply concerned about the rising rates of anxiety, depression, and other challenges affecting children. She set out to understand what parents in these remote communities were doing differently.
There were the obvious lessons: children learn by watching and practising. To teach them good habits, show them what to do and give them chances to try it out.
But some lessons were truly surprising. For instance:
- Don’t interfere unless there’s real danger!
- Let children argue and get a few scrapes and bruises.
- (And brace yourself…) Stop the habit of constant praising!
In essence, parents were responsible for creating a supportive environment and then getting the heck out of the way.
As a father of a six-year-old, I found myself reflecting on how we often act as helicopter parents, trying to protect our children from every problem and shield them from every mistake. But we have to remember that we won’t always be around. To truly prepare our children for life, we need to give them the freedom to grow through their own experiences.
As I reflected on these lessons, I realized how closely they apply to investing. Let’s explore two key parallels:
1. Avoid Over-Interference
Many investors fall into the trap of constantly tweaking their portfolios. When a fund performs well, they rush to invest more, hoping for repeated success. Conversely, they panic and exit as soon as the market dips.
This is like a parent hovering over their child, stepping into every minor argument or problem. Such interference disrupts natural growth and can do more harm than good.
Instead, trust the process. For example, if you’ve started a SIP, allow it to run its course without worrying about daily market fluctuations. Just as children need space to develop their own skills, your portfolio needs time to grow naturally.
2. Celebrate Progress, Not Perfection
One of the most beautiful parenting lessons is celebrating milestones, no matter how small. We cheer when our kids take their first steps, even if they wobble and fall right after.
In investing, this means celebrating progress rather than obsessing over perfect results. Completing a year of disciplined SIP contributions or sticking to your financial plan during a volatile market are significant wins.
Remember: Small, consistent victories lead to substantial long-term success.
Learning to Ride a Bicycle
Investing is a lot like learning to ride a bicycle. When your child first starts pedaling, your instinct is to hold on tight to the seat, afraid they might fall. But eventually, you have to let go. They’ll wobble, maybe fall, but that’s how they learn to balance and ride confidently.
Similarly, your investments need time and independence to grow. Constantly checking, tweaking, or reacting to market noise is like holding onto the bike—it stifles progress.
Final Thoughts: Trust the Process
Both parenting and investing require patience, trust, and the ability to step back. While hovering—over children or investments—might feel productive, it often hinders natural growth.
As a parent, I’m learning to let my child experience the world, knowing there will be a few falls along the way. Similarly, as investors, we must focus on the bigger picture, avoid unnecessary interference, and celebrate the small wins.
