The Marshmallow study on delayed gratification produced some fascinating results.
The Marshmallow experiment took place at Stanford University in 1972 by psychologist Walter Mischel, using children aged four to six years as subjects. The children were led into a room, empty of distractions, where a marshmallow was placed on a table. The children could eat the marshmallow, but if they waited for fifteen minutes without giving in to the temptation, they would be rewarded with a second marshmallow.
Some would “cover their eyes with their hands or turn around so that they can’t see the tray, others start kicking the desk, or stroke the marshmallow as if it were a tiny stuffed animal”, while others would simply eat the marshmallow as soon as the researchers left.
Of over 600 children who participated in the experiment, one third deferred gratification long enough to get the second marshmallow.
A follow up study found that children who delayed gratification grew up to be far more successful than their peers.
So how does this relate to property investment?
Property investment usually attracts two groups, the get rich quick brigade or the get rich slowly. Now of course we would all like to get rich quick but the reality is it doesn’t happen in property investment. Those who go looking for instant gratification will normally lose out and end up making little money as they are distracted too quickly. This type of investor will normally gravitate to companies promising huge returns quickly and end up getting bored and frustrated when the promises are broken and even worse, they end up losing money.
Educated property investors know that ‘get rich quickly’ is unrealistic. They are aware that property investment is lucrative in the long term and know that if they are patient, their plans will come to fruition and they can achieve great wealth.
So which are you, get rich quick? Sorry we are not for you. If you believe in long term growth and wealth give us a call, we will get on just fine.