Investing is often framed as a numbers game: ratios, returns, and risk metrics. But beneath the spreadsheets and charts lies something far more human – behaviour. How we react to markets, news, and time itself often shapes outcomes more than the underlying investments.
A recent note from our investment partners at Albion explored this idea beautifully. They called it ‘The Patience Premium’, and it struck me as something worth sharing.
Time changes the odds
Albion looked at a simple portfolio: 60% global equities, 40% short-dated government bonds. Then they asked a simple question: what percentage of the time did this mix deliver returns above inflation?
On a daily basis, the odds were about 50/50 – no better than a coin toss.
Over one month, they improved to 60%.
Stretch the horizon to 15 years, and every single outcome comfortably beat inflation. Even the worst 15-year stretch grew purchasing power by around 20%.
The longer your horizon, the more likely you are to succeed.
How often you look affects how you feel
Here’s where it gets interesting. Albion compared two investors:
- One who checks their portfolio every day.
- Another who looks only once every three years.
Same portfolio. Same returns. Completely different emotional experiences.
The daily checker feels whiplash – ups, downs, noise, and likely frustration. The three-yearly checker sees calmer, more positive progress.
The lesson? How often you look affects how you feel. And how you feel often drives what you do.
Noise is everywhere
In our phone-obsessed world, we’re bombarded by instant updates, attention-grabbing headlines, and endless alerts. It’s tempting to check in constantly, but what we’re reacting to is usually just noise.
The danger is that this noise provokes action. And when it comes to investing, reacting emotionally to short-term moves is one of the fastest ways to derail long-term success.
Patience pays
Portfolio structure remains vital. But behaviour is the bridge between strategy and success.
Our role at Emery Little is to help you stay focused on what really matters:
- Your long-term goals
- The financial plan that supports them
- The confidence that comes from sticking with a well-designed strategy
If you can do that, you unlock the patience premium. You give time and temperament the chance to do their work.
We can’t control markets. But we can control how often we look, how we respond, and the discipline with which we stick to our plan. And in investing, just as in life, patience is very often rewarded.
At Emery Little, we help people develop the patience and discipline needed for long-term investment success. If you’d like to understand more about how we approach investing or discuss how to stay focused on what really matters, please get in touch.
Endnote: Simple portfolio mix
Time period: 3rd July 1990 to 15th August 2025. Daily returns.
Currency: GBP
Inflation adjustment: UK Consumer Price Index (Bank of England)
Portfolio mix:
Sources: Ken French Data Library. Vanguard: IE00B03HD209. iShares: IE00B4WXJK79. Albion Strategic Consulting ©.
This is for educational purposes only. It’s not personal advice and we’re not recommending any specific investments. Everyone’s situation is different, so what’s right for one person might not be right for another.
