When we select something getting later over getting it now then it is known as delayed gratification. Patience is indeed a virtue. When we are delaying any offer then we must require to have a strong reason for it which motivates us to delay the offer.

Some people will be willing to pay extra just so they don’t have to wait. They either do not have control over their instincts or they do not have a strong motive to delay the offer. When we do not have a strong motive to postpone our decision, then either we make a wrong choice or we pay higher for our decision. Also, many people give up on a situation when they do not get instant results. But they are not able to convince their mind that good things take time.

Investment – When we invest in equities then we know that we can get good returns while we hold great business for the long term. That’s the reason we hold equities investment for the long term otherwise we have sold it on the same day (Lots of traders do it for making brokers wealthier). But delayed gratification requires a lot of mental effort.

I have seen many people, when they are not able to find out opportunities suitable to their process then they tend to change their process and start adopting what is working on that particular time. But that is a wrong concept. We need to put lots of effort before forming a process so later on, just evolution of it can happen, not the process will change entirely.

We need to understand that no process will work on each phase of the market cycle. So, underperformance and outperformance during a particular period will be going to knock on our door. We need to see the long-term result from the process, which should be above average.

This entire series will be reviewed with various examples from books which are Thinking, Fast and Slow and The Art of Thinking Clearly.