The Daily Buffett

← PreviousIndexNext →

The Art of Intelligent Investing

November 4th

All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.

Warren Buffett

Investing is a layered process that involves discernment, timing, and endurance. Discernment allows us to identify truly valuable companies. It's not just about jumping on the bandwagon of popular stocks but understanding the intrinsic worth of a company, its business model, financial health, and its position in the industry.

Timing, often misrepresented as speculative market timing, is about recognizing opportunities when they arise. It could be when an excellent company is misunderstood and undervalued by the market.

Endurance ties in with the idea of long-term investing. The stock market is inherently volatile, and there will be times when your investment is tested. However, maintaining your position in a fundamentally strong company through market fluctuations can prove highly rewarding in the long run.

Investing isn't a quick rich scheme; rather, it's like cultivating a garden. It takes time, patience, and constant attention. Nurture your investments, and they'll eventually bear fruit. But remember, the market is always evolving, and even the best companies can falter. Stay vigilant, seize opportunities, and practice patience.

Join the newsletter to get the daily reflection delivered to your inbox.

Copyright © 2023 by Scott Sansovich