Let Time Do the Heavy Lifting
The power of holding for the long run
Investing isn’t about chasing quick wins.
It’s about letting time do the heavy lifting. That’s why I buy stocks I plan to hold for at least five years, ideally 10 (or more). I might hold some investments for as long as I live, with no intentions to sell — only a plan to hand them off to my children or grandchildren.
That’s the only way I know that truly lets compounding take effect.
As Warren Buffett said: "The stock market is designed to transfer money from the active to the patient." In any given year, stocks can soar or crash for reasons that have nothing to do with a company’s long-term potential. But over a decade? Fundamentals win. Businesses that steadily grow earnings, expand their market share, and reinvest wisely tend to reward patient investors.
And, as Charlie Munger said, "The big money is not in the buying and selling, but in the waiting." How simple, how profound. Short-term traders try to predict the next move. I’d rather focus on what a company can become over time. Buying great businesses and letting them compound is one of the simplest yet most powerful ways to build wealth. The best part? The money compounds while you sleep.
The hardest part? Doing nothing, even when the headlines say a recession is coming. But history has shown that those who hold quality assets for the long run come out ahead.
Time is the ultimate edge in investing…if you let it work for you.
Keep investing for the long haul,
Matthew