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Co-Wise: Why do you stick to long-term investment?
Views 205K Contents 496

What does long-term investment bring to you?

Long-term investment rests on social development and technological progress. Investors could be more patient if they are more informed, which is more likely to achieve in the future. Even if the stock price fluctuates, a company's value will return to its intrinsic value as days go by. Except for stock prices, incomes, profits, and cash flows are also part of the valuation of a company.

First, when the market is turbulent and fragile, long-term investors are more likely to increase positions against the trends. They can rebalance the operations, adjust the asset allocations, and actively increase the positions to protect the market against speculators.

Second, long-term investors pay more attention to a company's long-term performance and shareholder returns. The voting right of shareholders allows them to supervise and improve the management of a company and shift the focus from short-term profits to long-term benefits.

For example, if you had stuck with $Apple (AAPL.US)$ , you could be very rich now.
What does long-term investment bring to you?
If you start investing in $Tesla (TSLA.US)$ early and hold on to it, you could get substantial returns.
What does long-term investment bring to you?
Long-term investors are those who forget what they've bought and leave them alone for a long time or those who can overcome human weaknesses. The good news is that the investment strategy could generate substantial returns for a few because others can't persist.

You may ask:
What are the pros and cons of long-term investment?
What is the biggest obstacle you've encountered?
How did you overcome it?
What are the valuable indicators for long-term investment?
How to build an ideal portfolio for it?
Have you ever read about long-term investment?
Can you recommend some books for us?

Suppose you want to stick to long-term investment but can't help to take profits in the short-term. In that case, you can set some investment disciplines for yourself and uphold them to become a marathon runner in investment. Please click Why do you stick to long-term investment? to join the discussion.

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Event duration: Now – Dec 27, 2021 11:59 AM ET / Dec 27, 2021 11:59 PM SGT
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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  • NANA123 : I want to find stocks that are undervalued in their market price as compared to their intrinsic value.[undefined][undefined][undefined]

  • Zephyr1974 : Fairly valued companies with solid historical growth rate and strong moat not easily displaced or disrupted in the next 5 to 10 years are equally good holdings to have in the portfolio.

  • Celestinel : $American Airlines (AAL.US)$ is the #22 ticker with momentum activity traded by institutions with options transaction volume 2.4x the average daily volume, a leading indicator of market movement.

  • Meta Moo OP Zephyr1974 : I am looking forward to your more detailed case sharing on the topic.[undefined] Please click: https://www.moomoo.com/community/discussion/442499137

  • Meta Moo OP NANA123 : Nana has entered the competition, you're great[undefined][undefined]

  • Meta Moo OP Celestinel : Are there other indicators that can use as a reference for long-term trading?[undefined]

  • InvestedWallet2133 : I wish I would have invested in Tesla back in 2014-2015 when they were only $38 s share. I had a co-worker who dumped half his paycheck every 2 weeks into Tesla telling me one day they were going to explode. By the end of the year he had over 1,000 shares. He kept buying over the following year. Needless to say he's a millionaire now. I couldn't afford to invest like he did or was, but I wish even if I had bought 100-200 shares I'd be sitting pretty good right now. So if you can afford to invest in something and have the income that allows you to hold off on selling so you can let that investment grow do it. I sure wish I would have 6 years ago.

  • Meta Moo OP InvestedWallet2133 : [undefined][undefined][undefined]Time is the friend of the wonderful company, the enemy of the mediocre.

  • Aloner : I think now it's tough to be a value investor especially when all the attention is on "growth" stocks, EVs, Crypto and Metaverse companies. As an accountant by training, it's tough for me to value a loss making company that's growing exponentially. However, I still agree that in the LT company prices will REVERT to intrinsic value as Mr Market will be at times over optimistic so traditional value investing principles like looking for PE companies <15 or PEG <1 helps you avoid stocks with lots of volatility but the downside is that you miss out on great companies like Amazon or maybe Tesla. Again as a true blue value investor I'm more conservative and for me I'm willing to bear china risk so $BABA-W (09988.HK)$ is too cheap to ignore. I deliberately chose the HK stock as one I don't need to pay exorbitant fees to convert if BABA is delisted and two I think HK is still a valuable marketplace to China but that's just my opinion. Though ETFs are good way to invest long term I still believe in stock picking and it helps that munger seems to be holding on to BABA...just my opinion and happy to just share but don't take my word for it and do your own due diligence [undefined]

  • determined Birdie : change is scary but can benefit in the long-term.

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