Law Four: Invest for the long-term

Gavin

A funny thing happens when you invest long-term (ten or more years). You begin to think long-term. You focus on the essential items. The ever present market hype, which ultimately has little bearing on your investment outcome, becomes irrelevant.

This offers many obvious advantages. For example, the compound effects of an investment held over the long term are far greater than for a comparable investment held for only a few years. Plus, a long-term perspective allows you to ride out market fluctuations, and avoids you paying unnecessary brokerage fees and capital gains taxes.

Next » Law five

Back « Law three