“Long-term investment success is ultimately determined by the ability to ignore external ‘noises’ and concentrate on the issue of buying good businesses.”
~ Michael Lee-Chin
Invest as if…
“When Black Monday happened, the people that had a long enough time frame to wait it out until the recovery were probably fine. In fact, despite Black Monday, the American markets actually finished 1987 in positive territory. But anyone who held long-term investments with a short-term mindset might not have been able to stick around long enough for the recovery.
It’s important to invest in a manner that is consistent with your objectives. If you have a short-term horizon then invest as if a bear market is looming around the corner. Because, sooner or later, one will be.”
Posted in All Columns, Investment Management, Risk Management