Stocks Are Like Trees
They provide shelter and nourishment for us and our children, if we take care of them.
Their growth is slow, and sometimes imperceivable, but given enough time they may grow strong. Patient farmers have bigger orchards.
The older they get, the more fruit they can bear. Branches beget branches, compounding the results.
Trees can make new trees if they are fertile, and the conditions are right. Those trees can then grow and make trees of their own. More trees can mean more fruit.
Sometimes they need to be pruned back when they grow too tall or get out of proportion to the landscape.
Sometimes they must be removed altogether. When they get sick and are no longer viable, they might need to be replaced by another, healthier tree.
All trees have a lifespan. Some are sequoias. Others are pines.
Variety is a good thing. Planting a mix of trees that compliment each other can render more produce than just having one type.
Some trees don’t survive. The ones that do make up for the few that don’t.
Trees are seasonal. Some produce all year long, while others shed their leaves and go dormant for a season.
A harsh winter or very dry summer can stunt their growth, causing them to produce less. Usually when this happens, all are affected. But the larger ones can tolerate more extremes.
In groups, they can shelter each other, buffering the strongest gale. Alone, they are more susceptible to strong forces.
Even when cut down, their boards and fibers can be made into other useful things which can enrich our lives.
Trees need exposure and risk to thrive. They absorb nutrients and sunlight and process it into something else we can consume.
Trees store energy which we convert into power, textiles, resins, paper, medicines and more. Cumulatively speaking, what we get from them in the long run is usually more than we invest.
While they appear simple on the outside, a vast network and many layers of systems are at work within.
Often overlooked, trees do all these things as part of the scenery while the world goes on around them in its haste.
Trees are beautiful, and I can’t imagine a world without them.
Always with Candor,
Ivan
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
*The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.