“Returns decrease as motion increases” is a profound statement that speaks to the principles of investing, business, and life in general. At its core, it suggests that the more you interfere, the more you act or change things, the less you might gain in return. This is based on the idea that constant activity or motion doesn’t necessarily equate to progress or high returns, and in many cases, it can actually hinder growth or devalue potential returns.
In the context of investing, this quote suggests that frequently buying and selling stocks (increased motion) may result in lower returns because of transaction costs, short-term focus, and the risk of making decisions based on emotional responses to market volatility. It supports the strategy of long-term investing where one buys stocks in solid businesses and holds onto them for a significant period, allowing the investment to grow.
In terms of personal development, this quote can be interpreted as a reminder that constant activity or busyness doesn’t necessarily lead to productive outcomes. For example, always being busy doesn’t mean you’re using your time effectively. It might mean you’re merely reacting to what comes at you rather than proactively pursuing your goals. Similarly, constantly changing your strategies, goals, or focus can prevent you from making meaningful progress in any one area.
In today’s world, this quote has significant relevance. In our fast-paced, always-connected culture, there’s a tendency to equate busyness with productivity and success. But this quote reminds us that more motion doesn’t necessarily lead to better results. It encourages us to slow down, focus, and invest our time and energy wisely, whether that’s in the stocks we choose to invest in or the personal goals we aim to achieve. It’s a call to embrace patience, persistence, and long-term thinking.
