It could be that I am just getting older and time passes more quickly, or that I now have two kids andam sensitive to the impending start of school. But it seems like summer flies by faster and faster each year - which may cause you to attempt to cram in a bunch of pre-Labor Day activities. But is this the best use of rare potential down time? Other than for the benefit of not having to worry about one’s portfolio while sipping Long Island Ice Teas cruising off the Hampton shores on your (or your stock broker’s) yacht, when does taking less action actually work to our benefit?

In a society where it seems like we must fill every minute with activity (including answering texts while driving – what has our world come to?), could there be times when less actually equals more? Let’s examine a few such scenarios, then per usual, apply the analogies to investing.

When it comes to physical exercise, in order to get the benefit of a hard weight workout, for example, you need to let the body rest. It is actually counterproductive to lift the same body parts day after day as, without proper recovery, the muscle group will never have the chance to repair and rejuvenate. In the cerebral realm, if you don’t give your mind a rest while preparing for an exam, you will overload your cortex and be less prepared for the effort. In both cases, inaction benefits your cause.

So, too, in the world of investing, is doing nothing often the best course of action. Yet we often feel compelled to act, to do something. So first, how do we recognize that we might be doing our wallets a disservice by taking action, and more importantly, what can we do (or not do!) about it? Warren Buffett told me (OK, he didn’t actually say it to me personally, but rather to a room full of 300 business school students) that you should think of your investing life as though you have a card with only 20 holes that can be punched – the 20 holes representing 20 investments. As a starting point, if you set your "quality of investment" bar so high as to have it take one of only 20 investments you will be allowed to make in life, then you will be less inclined to take action every time a seemingly attractive opportunity arises.

And just as vital, when compelling opportunities do come to the fore, as you only have a limited number of times you can strike, you will do so with conviction and without prejudice.

What other techniques can you employ to resist the temptation to pull the trigger every time some less-than-stellar stock tip comes your way? First, instigate a requirement that you do at least three hours worth of fundamental company research before making the investment. Of course you should be doing this in any case, but instilling this self-imposed rule will at least put up some barrier to impulsive decisions.

Next, if you still feel compelled to invest, consider layering into the position by first purchasing a small number of shares and then later, only if you are convinced of the merits of the investment, adding to the position. For example, if you wanted to own 1,000 shares, buy only 100 or 200 initially. Often this will satisfy your ‘craving’ for action. If the stock goes down and you still want to own more, you can purchase the remaining shares at a lower price. If instead the stock goes up, you may be okay with the profits you are earning from the smaller position.

Another good technique for satiating the need to act is to add to an existing high-quality position. Assuming your holdings of a given company do not constitute too large a position in your portfolio, you can buy more shares of a known stock rather than introducing some lower quality investment into the fold.

Being a person of action has its merits. Great things are done by those who go out into the world and engage life to its fullest. And wealth is often created by taking action when others are frozen in fear. That said, your investing action should be done with forethought and purpose, not in a mode of emotions-based reactions. If you have any doubts about an investment, your first action should be to take no action at all. Go for a walk, take a dip in the ocean or open up an annual report. If you still like the investment idea, then purchase a less than full position and go from there. Having this discipline will help you avoid costly investment mistakes – and allow you to enjoy the dog days of summer.