You can be the envy of every stockbroker… floor trader… and intra-day trader who is a prisoner of the flashing green and red indicators on his laptop. They all have to pay attention to the market. Every day. All the time.
Pension, endowment, and hedge fund managers are no different. If they’re not the first ones to get in and out of positions, they lose millions of dollars.
But you can float above this hour-to-hour slugfest. You don’t even have to know what’s going on from day to day. And if you have only the vaguest notion of what your investment is doing week to week, that’s okay too.
Because you have the luxury of investing in a way that most big-money funds can’t: You can pick your stocks for their long-term potential. Not their potential for next month or next quarter, but next year… or perhaps two years from now.
Just think of the freedom such an approach allows…
You can invest in that retail company that enjoys such big profit margins – even if you (or everybody else) think the holidays won’t be great for retailers.
You can invest in that mining company doing such a great job of discovering silver… even if the price of silver isn’t going up as much as expected right now.
You can invest in that medium-sized rig-contracting company that has the best rig fleet around – even if investors are selling the stock because the price of oil is going down.
But there is a price to pay for this freedom: Patience.
The stocks you buy with long-term profits in mind could go down more before they go up. That has never bothered legendary investor Warren Buffett. And it shouldn’t bother you. Eventually, he makes impressive gains on the vast majority of his investments. All he does is wait.
And that’s all you have to do.