A Tale of Two Trees
During my morning walk, I noticed two trees. One tree touched the sky with giant limbs, dark green leaves, and rich fruit. The other tree was short and lifeless, and I was curious why they were radically different.
My curiosity led me to the homeowner of the healthy tree. I knocked on her door, and when she answered, I asked her about her magnificent tree. She planted it years ago, waters it sparingly, and prunes it occasionally. She added, "I planted it and let mother nature do the rest."
After I left her house, I approached the owner of the dead tree and met him in the front yard to learn more about his situation. He said he wakes up early to get the latest news from the Weather Channel and then spends hours scrolling social media sites to listen to experts about trees and the weather.
He said, "I planted my tree decades ago, and ever since then, I've worried about it constantly." He continued, "After my morning routine, I run outside and pull the tree out of the ground to ensure the roots are still growing and they're getting enough water."
"You rip it out of the ground every day?" I asked.
"I do because it's not going to grow if I don't check the roots daily."
"If you uproot it daily, the roots can't grow."
"It will grow someday. I know it will, but I worry about the elements hurting my little tree. I cover it during the day so the sun won't beat down on it, and when there's a storm warning, I bring it inside to protect it from the rain and wind."
"Trees literally need rain and sun to grow. Why would you not leave your tree in the ground?"
"Well," he said, "I already told you I'm scared it will get hurt, and I don't want anything to happen to it, so I care for it every day."
"Not really. It will grow like your neighbor's beautiful tree if you leave it alone."
"I guess so, but she has to rake leaves, pick fruit, and trim branches. It's too much work for me."
"Okay, well, good luck with your strategy."
The moral of the story: Stocks, like trees, take time to grow and bear fruit.
May 20, 2022
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM's custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
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