Financial tricks: invest with a peasant strategy

Financial tricks: invest with a peasant strategy

Financial tricks: invest with a peasant strategy

Sow, wait and reap

Financial tricks: invest with a peasant strategy

Have you ever wondered why there so much wariness towards financial markets? Mostly, we have to blame movies and stories which emphasize the cynical, sometimes unscrupulous and immoral aspect of the world of finance. This is, in fact, one of the main reasons why people – while entering financial markets – have the perception of entering a minefield, where there is a real risk of stepping on the wrong foot.

To be sure, markets are competitive and Darwinian. But they can be also seen in terms of opportunity for those who don’t like to take uncalculated risks.

One of the best ways to save and invest is by following the logic of the farmer who sows, waits and reaps. The farsighted farmer plants fruits and vegetables of all kinds, each with its own characteristics, in terms of cost, sowing, cultivation. That’s why, when we plan our financial future, we must make our own the three secrets of the farmer, which are:

  1. patience;
  2. diversification;
  3. constancy.

First of all, you need patience. Markets have rhythms, cyclically there are reversals and then recoveries. Nevertheless, you should begin to sow the seeds of your financial future, in order to expect the fruits (automatic returns).

Then, you need to diversificate. Farmers never plant just one crop, but a wide variety of vegetables: diversification is the key to investing successfully, even if you are not an expert.

Finally, the third secret is constancy. The farmer can never give up: every day, rain or shine, with zero degrees or forty, he must do his job, methodically and consistently. When you invest is equal: constancy rewards. Time will bear fruit.

I realize that it is unpopular to talk about patience in these ultra-frenetic times of frozen vegetables and precooked soups. However, I can assure you that the joy of pulling out of the ground a vegetable you planted a few months earlier and taking a bite out of it is unparalleled! It’s the same satisfaction you’ll get from reaching a financial goal you set for yourself: you’ll look back with pride at the small sacrifices you made in the past to reach it.

More on how to follow the peasant strategy in the book One Million for my Daughter


Pietro Di Lorenzo