Thursday, August 28, 1997
Singles and Doubles
by
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There are always a number of get-rich-quick schemes floating around. And they raise the question of how high you should aim when you invest. The paradox brings to mind my days in baseball.
My Dad always said that I was a natural hitter. (My fielding abilities will not be discussed.) I really do not remember being a good hitter, but my Dad would not lie about something like that. I never hit many home runs; in fact, I never tried for home runs. Swinging for the fences was not my style. The other guys would occasionally hit dingers, and they were very exciting. Me, I would just get a bunch of singles and doubles. But I was pretty consistent.
My Dad tells me now that I actually batted in a lot of runs back then. Those singles and doubles may have been boring, but they sure were effective.
The same idea applies to investing. Are you going to swing for the fences or are you going to go for those singles and doubles? Are you going to try to double your money every year, or every 4 or 5 years? If you want to win the game, your chances are better going for those singles and doubles.
As for my fielding, well, I am not going to discuss that here.
Walter G. Kjellander