Long-term investing: more than just holding a stock
There must be conviction to keeping shares of a company for the long haul – backed by accumulated knowledge of the business over decades
ON PAPER, long-term investing sounds straightforward. Its entire strategy is in its name: holding stocks for the long run. In other words, you buy a stock, hold it, and wait for it to appreciate.
Simple, right? Well, not quite. In my view, long-term investing is more than just the act of buying and holding. It’s a way of thinking – a mindset – if you will. Let me explain.
Buy because you want to own the business
When some investors say they are investing for the long term, what they really mean is that they bought a stock and plan to sit on it. But there’s a problem with this framing.
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