The Daily Buffett

← PreviousIndexNext →

Investing for the Long Haul

December 11th

Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

Warren Buffett

The readiness to hold an investment for a decade indicates a belief in a company's fundamental strength, its business model, and its ability to weather the storms of economic cycles. It's about the patience to visualize and appreciate the long-term potential of a company rather than being swayed by the whims of short-term market fluctuations.

This view of investing emphasizes risk management, the art of minimizing potential losses. It cautions against placing bets on transient market sentiments and encourages investing in enduring value.

The perspective also suggests an emotional detachment from investments. It implores us not to be swayed by temporary market triumphs or upheavals but to focus on the intrinsic value and the long-term viability of our holdings.

After all, as investors, we are buying a part of a business, not renting a stock ticker. The market's daily gyrations are insignificant compared to the enduring growth of a fundamentally strong company. This conviction serves as a guide, steering us towards the path of sustainable investment success.

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

Copyright © 2023 by Scott Sansovich