Many of the greatest investors preach buy-and-hold mentalities and patience in investing. In this interview from Backstage Pass aired on Jan. 5, Khaled bin Alwaleed, the CEO and founder of KBW Ventures, explains to Fool contributor Jeremy Bowman why patience is such a virtue in investing and how he learned that lesson.
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Jeremy Bowman: You founded KBW in 2014. You mentioned learning from some mistakes, things that didn't work out along the way. What would be maybe one or two pieces of advice that you would give if you could go back to the beginning and give yourself, what do you think those would be?
HRH Prince Khaled bin Alwaleed bin Talal Al Saud: Honestly, my number 1 advice to myself would be just have patience. Not everything is a rush. One of the most important thing is I have learned and I've got burned through this is, "we have this amazing opportunity. It's not going to last. We need investment the next 30 days or stuff like that."
One or two might work out, but the majority of them never do work out. There's a reason why they're in a hurry to have an investment. Honestly, one of the most important things that I would [laughs] give myself as advice, is patience and then do my homework. Nothing is a rush because if there isn't a good opportunity now, a better one is going to come in the future. It's just a matter of believing that there is, and having the patience and understanding that we can get there as long as we're not just pulling the trigger just for the sake of being in an investment because he or she the founder really needs this investment.
Jeremy Bowman: Yeah, I think that's a great point too. As far as patience can apply to almost any investor, certainly, when we encourage buy-and-hold investing [laughs] that often requires patience when you see, especially with some of the more volatile stocks we've seen recently.
HRH Prince Khaled bin Alwaleed bin Talal Al Saud: Sure. That's honestly one of the things I've learned from my father's specifically. Buy-and-hold is important, but the cost price is super important too. Entry point, rather is super-important too. So that's why I say patience. Patience doesn't necessarily mean no, don't invest in this company but buy-and-hold extra another company. There's also entry point, that is super important. That's something else that I really did learn from my dad also.
Jeremy Bowman: Yeah, that's a good point.
