Long Term Investment - A Strategy for Growing Returns Without Sleepless Nights
Patience is a Virtue
Throughout the ages, great teachers have extolled the virtue of patience and this has proven to be true in the minefield of stock investments. Arguably the most well-known student of Benjamin Graham (the father of value investing), Warren Buffet gave two valuable pieces of advice:
1) “Price is what you pay. Value is what you get”.
2) “For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”
Throughout the ages, great teachers have extolled the virtue of patience and this has proven to be true in the minefield of stock investments. Arguably the most well-known student of Benjamin Graham (the father of value investing), Warren Buffet gave two valuable pieces of advice:
1) “Price is what you pay. Value is what you get”.
2) “For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”
Value investors who hold a long term view hunt for undervalued stocks that have solid fundamentals and a good growth trajectory. This puts them in a better position to ride out the inevitable ups and downs of equity markets without losing sleep and be able to profit in the long run. $Apple(AAPL.US$ $Microsoft(MSFT.US$ $Meta Platforms(FB.US$ $Netflix(NFLX.US$ $Amazon(AMZN.US$ $Alphabet-C(GOOG.US$ $Alphabet-A(GOOGL.US$ $S&P 500 Index(.SPX.US$ $S&P 500 Index(.SPX.US$ $SPDR S&P 500 ETF(SPY.US$ $Vanguard S&P 500 ETF(VOO.US$ are examples of stocks that have born fruit for investors who invested in them early tor the long term.
Why Long Term Investment Works
Why Long Term Investment Works
A tree does not grow overnight. Long term investment makes use of the power of compounding to help our money grow.
American investor Peter Lynch famously stated that “far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” The truth is very few people, even professionals with extensive fund management experience, can time and beat the market consistently.
How I do Long Term Investing
American investor Peter Lynch famously stated that “far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” The truth is very few people, even professionals with extensive fund management experience, can time and beat the market consistently.
How I do Long Term Investing
1) I only invest in companies whose business I understand.
2) I do my due diligence. I study their financial reports. I try to pay attention to industry developments and regulatory changes.
3) I only invest with money I do not need in the short term after setting aside sufficient funds for emergencies.
4) I split my purchases or do DCA. This helps me to avoid timing the market and detach my emotions from the action of investing.
5) Be greedy when others are fearful. A market correction offers the best opportunity to buy undervalued companies.
$BYD Co.(BYDDF.US$ $AbbVie(ABBV.US$ $Grab Holdings(GRAB.US$ $Sea(SE.US$ $Block(SQ.US$ $Roblox(RBLX.US$ $Marin Software(MRIN.US$ $Arcturus Therapeutics(ARCT.US$ $Pfizer(PFE.US$ $Merck & Co(MRK.US$ $Novavax(NVAX.US$ $Moderna(MRNA.US$ $Nokia Oyj(NOK.US$ $Lucid Group(LCID.US$ $Salesforce(CRM.US$ $Advanced Micro Devices(AMD.US$ $ContextLogic(WISH.US$ $Johnson & Johnson(JNJ.US$ $Coca-Cola(KO.US$ $McDonald's(MCD.US$ $PepsiCo(PEP.US$ $Palantir(PLTR.US$ $Disney(DIS.US$ $PayPal(PYPL.US$ $Visa(V.US$ $MasterCard(MA.US$ $Evolve Bitcoin ETF USD Unhedged(EBIT.U.CA$ $Coinbase(COIN.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $Berkshire Hathaway-B(BRK.B.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Rivian Automotive(RIVN.US$ $Teladoc Health(TDOC.US$ $Spotify Technology(SPOT.US$ $Uber Technologies(UBER.US$ $Palo Alto Networks(PANW.US$ $SoFi Technologies(SOFI.US$
2) I do my due diligence. I study their financial reports. I try to pay attention to industry developments and regulatory changes.
3) I only invest with money I do not need in the short term after setting aside sufficient funds for emergencies.
4) I split my purchases or do DCA. This helps me to avoid timing the market and detach my emotions from the action of investing.
5) Be greedy when others are fearful. A market correction offers the best opportunity to buy undervalued companies.
$BYD Co.(BYDDF.US$ $AbbVie(ABBV.US$ $Grab Holdings(GRAB.US$ $Sea(SE.US$ $Block(SQ.US$ $Roblox(RBLX.US$ $Marin Software(MRIN.US$ $Arcturus Therapeutics(ARCT.US$ $Pfizer(PFE.US$ $Merck & Co(MRK.US$ $Novavax(NVAX.US$ $Moderna(MRNA.US$ $Nokia Oyj(NOK.US$ $Lucid Group(LCID.US$ $Salesforce(CRM.US$ $Advanced Micro Devices(AMD.US$ $ContextLogic(WISH.US$ $Johnson & Johnson(JNJ.US$ $Coca-Cola(KO.US$ $McDonald's(MCD.US$ $PepsiCo(PEP.US$ $Palantir(PLTR.US$ $Disney(DIS.US$ $PayPal(PYPL.US$ $Visa(V.US$ $MasterCard(MA.US$ $Evolve Bitcoin ETF USD Unhedged(EBIT.U.CA$ $Coinbase(COIN.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $Berkshire Hathaway-B(BRK.B.US$ $NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Rivian Automotive(RIVN.US$ $Teladoc Health(TDOC.US$ $Spotify Technology(SPOT.US$ $Uber Technologies(UBER.US$ $Palo Alto Networks(PANW.US$ $SoFi Technologies(SOFI.US$
Disclaimer: The above sharing is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor and consider your investment objectives, financial needs, financial position and risk profile before making any investment decision.
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iamiam : good post. great fundamentals for investors. i would only contend nearly every stock mentioned breaks both of Buffetts rules, not to mention I dont think peter lynch would be touching those, he would be running for small cap undervalued producers with pricing power
WinningTrader : But do the people really sell the stock to lock the profits?
Howardy : Keeping $Grab Holdings (GRAB.US)$ and $DiDi Global (Delisted) (DIDI.US)$
at the post of parting from $Apple (AAPL.US)$
Only time will tell.
DadacaiOP iamiam: Thanks for reading and commenting. The reason I cited those stocks is they are clear examples of investments that bore great fruit if one had invested in them for the long term years ago.
iamiam DadacaiOP: aha very true, great examples!
Tigger7777 :
DadacaiOP Tigger7777: Thanks for reading and letting me know you like the post.
DadacaiOP WinningTrader: People sell stocks for a variety of reasons. Locking in profit is one of them.
road to 1 mill : wonderful
DadacaiOP road to 1 mill: Thanks for dropping by. Merry Christmas!
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