Stop cutting the flowers and watering the weeds

The inspiration for this week's article came from a great discussion we had last week during a board meeting for one of our partner companies.? The crux of the discussion was where we should be making investments in the business both in terms of capital, time and focus.? Should we be focusing on fixing underperforming divisions, or rather shifting our focus and funding to what is already yielding the best results.

A blooming good analogy?

If you’re a gardener, you know the basics: nurture what’s growing well and remove what’s stifling progress.? But this simple principle doesn’t always make its way into our investment strategies, business decisions, or even personal growth.? Legendary Fidelity investor Peter Lynch coined the phrase, “Stop cutting the flowers and watering the weeds,” to highlight a critical behavioural mistake we often make: holding on to underperforming investments or ideas while prematurely abandoning winners.

So, what does this mean for us—whether we’re managing a portfolio, leading a team, or navigating life?

Why do we water the weeds?

Human psychology is a fascinating thing.? Our natural tendencies often lead us to make counterproductive decisions, and investing is a prime example.? Here are a few reasons why we’re tempted to hold onto the “weeds”:

1. Loss aversion: we hate realising losses, even when it’s clear that holding onto a bad investment (or a failing idea) is costing us more in the long run.? It’s easier to cling to hope than to admit defeat
2. Sunk cost fallacy: we often think, “I’ve already invested so much time or money; I can’t quit now.”? But sunk costs are just that—sunk.? Future decisions should focus on future potential, not past investments
3. Emotional attachment: whether it’s a stock we’ve held for years, a business project we championed, or a personal habit we’ve had forever, emotional attachment clouds judgment.? Letting go feels personal, even when it’s the logical choice.

Why do we cut the flowers?

Equally perplexing is our tendency to sell winners too soon.? After all, isn’t the goal to capture gains?? The problem is, many of us cut our gains short because:

1. Fear of losing gains: once we see a profit, our instinct is to lock it in before the market (or circumstances) takes it away.? This short-term thinking often robs us of significant long-term growth
2. Impatience: successful ventures often take time to compound their returns.? In our fast-paced world, we can’t resist the allure of quicker wins, even if they’re smaller
3. Misplaced focus: we’re so focused on “rebalancing” or diversifying that we fail to recognise when a flower—a high-performing investment, project, or idea—deserves more care and attention.

How to break the cycle

Peter Lynch’s advice is simple yet profound: double down on what works and cut your losses quickly.? Here’s how you can apply this wisdom in practical ways:

1. Investing: let your winners run

If a stock, asset, or investment is thriving, resist the urge to sell it prematurely.? Instead, focus on its fundamentals.? If it’s still a good value with solid growth potential, keep it in your portfolio.? On the flip side, if an underperforming investment shows no signs of recovery, don’t hesitate to sell

2. Business: prioritise high-performing projects

In the workplace, it’s easy to pour resources into struggling projects, hoping to turn them around.? But what if those same resources could supercharge your top-performing initiatives?? Shift your focus and funding to what’s already yielding the best results

3. Personal development: nurture positive habits

In our personal lives, we often fixate on eliminating bad habits instead of amplifying the good ones.? Instead of focusing solely on stopping procrastination, for instance, channel energy into habits that foster productivity, like time-blocking or deep work sessions.

Final thoughts: be a strategic gardener

Investing, business, and life are like gardens.? They require constant care, attention, and—most importantly—strategic decisions about where to place your energy and resources.? As Peter Lynch reminds us, the key to long-term success is simple: stop cutting the flowers and watering the weeds.

Take a moment today to evaluate your portfolio, your projects, or your personal priorities.? Are you nurturing what’s thriving?? Are you pruning what’s not?? The answers to these questions could transform your outcomes—and your garden—for the better.