Mango Tree vs Money Plant

Hiren D May 5, 2023

Mango Tree vs Money Plant

Mango Tree:

Investment in a mango tree is like planting a sapling that requires years of nurturing and patience to bear fruit. Similarly, long-term investments in equity products may take time to yield significant returns but can provide consistent growth over time.

“Patience is a virtue in investing. The best returns are often found by those who wait.”
Peter Lynch

Money Plant:

Money plants can be seen as a short-term investment strategy that is easy to execute and low-risk, with quick returns. Similarly, short-term investments can add diversification to a portfolio, but may not yield significant profits in the long run.

According to this analogy, we keep limited track of how fast the mango sapling grows after we plant it. Neither do we measure its growth regularly nor do we expect its fruits right away after planting. So, why do we do that with investments? We expect significant results right after we start investing and then become anxious when we don’t see them, which further results in the withdrawal of that investment. This process hampers the way of long-term portfolio building.

Money plants, on the other hand, can be compared to a short-term investment strategy. Money plants are affordable, easy to care for, and can thrive in almost any environment. Similarly, a short-term investment strategy can be low-risk, easy to execute, and yield quick returns. While money plants may not yield significant profits in the long run, they can add a touch of nature to a home or office. Similarly, short-term investments may not be sustainable investments over time, but they can be a great way to diversify a portfolio.

In conclusion, the investment analogy of mango trees and money plants goes beyond just comparing them to short-term and long-term investment strategies. It is essential to approach investments with a well-informed and well-rounded perspective, and patience is a virtue when it comes to investing. Remember, the best returns are often found by those who wait.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” 

Warren Buffett

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