The Daily Buffett

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The Power of Patience and Diversification

July 17th

American business -- and consequently a basket of stocks -- is virtually certain to be worth far more in the years ahead.

Warren Buffett

The long-term nature of investing is not about quick turnover; it is about patience, and an unshakeable belief in the growth and resilience of economies. This perspective encourages us to step back from the daily ups and downs, the panic selling and euphoric buying, and instead to focus on the bigger picture. That picture is one of progress, of industries evolving, businesses growing, and consequently, the value of a diversified portfolio increasing over time.

A diversified portfolio is akin to spreading bets across a range of outcomes, reducing risk and increasing the likelihood of capturing growth, echoing the same principle applied by nature to ensure survival. It's not about finding the one golden egg but gathering a variety that, collectively, will increase in worth.

Resilience in investing comes from focusing on long-term growth rather than short-term fluctuations, and spreading investments across a range of stocks. The quiet consistency in this approach mirrors the slow, often overlooked decisions that form the bedrock of a solid investment portfolio. This quiet, consistent effort is often the most rewarding.

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