Stocks, Control & Patience

I've been thinking a lot recently about how much farmers and investors have in common. Both are in the unenviable position of having to depend on something they can't control.I grew up on a farm in Illinois. When I was a kid, my cousins, sisters and I were routinely given the glamorous task of clearing rocks out of the fields. It was pretty simple work: Find a rock as big as you can carry, put it in the bucket of the tractor, repeat.Here's a picture of the family farm, in case you were wondering how big these fields were:Growing up in a farming family, you get used to these kinds of “character building” chores.You also develop a healthy appreciation for the types of circumstances you can and can’t control. For all the decisions farmers make, all the work they do, ultimately they’re at the mercy of the one thing no one can control: The weather.The weather is a constant source of conversation (and aggravation) in farming families. Sometimes it rains too much. Sometimes it rains too little. It almost never rains just the right amount. And of course, if the weather doesn’t cooperate, the whole year’s crops are at risk.With so much riding on something that can’t be controlled, farmers try to focus on tasks they can control. Which crops to plant, which fertilizers to use… making sure the fields aren’t littered with rocks that will ruin their expensive machinery.These days I’m 1100 miles away from the farm, but I think about this idea constantly in my work advising people on their investments -- the anxiety of being dependent on something you can’t control. The way I see it:We have to take what the market gives us.I use this phrase with my clients and my students all the time.Once you’re in the stock market, you have to give up any illusion of control. The short-term is wildly unpredictable, with a wide range of outcomes over a 12-month period. Sometimes it’s unpredictable in your favor, sometimes not.Investing in stocks is about having the potential for higher rates of return over time, but you cannot control when those gains materialize. Sometimes you have to wait a long time.With the markets contributing so much uncertainty, it’s crucial to focus on the very important things you can control. Like your:• Household budget• Taxes• Career choices• Savings rate• Debt repayment schedule• Risk toleranceAnd maybe most importantly, you can work on controlling your emotions by accepting that volatility is an unavoidable part of the stock market. Focusing on the simple jobs you’re able to control can make the rest of it a little easier.