The Farmer And The Calf – An Investment Story
November 28, 2011 3 Comments
Hello People ! I’m sorry I was gone for so long.I was having a pretty stressful time and blogging just wasn’t an option.
Today’s post is a nice allegory I found here: http://value-picks.blogspot.com/2011/11/farmer-and-calf-investment-story.html
‘This story is about a farmer who received a calf from a rich man. Hopeful that the calf will be able to help him have a better life, the farmer did his best to take care of it. But as the calf grew, so did the farmer’s expenses.One day, he said to himself, “I don’t want to wait anymore for this calf to become an ox. I’ll just sell it and buy several sheep which are easier and much cheaper to take care of.”And so he did just that.After several months, he realized that breeding sheep were not as easy as he thought. And so he said to himself, “It takes too long for these sheep to give birth. I better just sell them and buy myself several hens which can lay eggs for me everyday.”And so he did just that.The plan worked very well, he was earning good from selling all the eggs. Life improved for the farmer. But after several months, the hens started to lay less and less eggs until one day, the hens couldn’t produce anymore.The farmer was devastated. In his anger, he cooked all the hens and had himself a feast.Later that week, he remembered the single calf that started it all and realized that after all his hard work, nothing had changed in his life.”
A good warning for those of us who won’t take the pains to sit down and work out our goals and think through what we need by way of time,effort ,money etc for achieving them.
The story could also be read as a warning to be steadfast.Hopping around from investment to investment might leave us with too little to show for our efforts.But that’s not to say that staying onboard a sinking ship is very smart either.There is no alternative to due deligence before investing ,adopting risk mitigation measures and monitoring one’s investments regularly and acting decisively.
There are many layers to this simple story and I would love to hear your interpretation so please leave me a comment about your take on this story.