Hi Guys,
In his classic “Winning the Loser’s Game”, Charles Ellis likes to distinguish between short term market speculators and long term market investors. He continuously talks about long term Investing in the 10-year range, mostly to capture full cycles. Over 10-year periods the equity markets have delivered a nearly 100% record of positive rewards
Many investors trade too often and fail to capture returns generated by a fund they owned briefly and abandoned too early. This behavioral gap is familiar to most investors. Here is a Link to a column that addresses this issue yet another time:
http://awealthofcommonsense.com/The piece highlights an attribute that many Vanguard investors possess: a longer term perspective that with the passage of time benefits its practitioner. The article also references an earlier work that is worth your review. Here is a Link to it:
http://awealthofcommonsense.com/learning-vanguard-investors/These data reinforce the Ellis view that long term patience and persistence carry the day in portfolio management. Often just standing still and staying the course is the winning strategy.
Best Regards.
