Introduction
I believe that investors have the best chance for success when they have realistic expectations about their investments. True investors recognize that investing in stocks almost by definition is a long-term endeavor. If you invest in common stocks, you are in truth investing in the business behind the stock. The operating success of the business is what creates wealth on your behalf. However, this is a long-term process – and a process that day traders and speculators simply do not seem to be able to grasp.
Southern Co (SO), Altria Group (MO), Alphabet (GOOGL), Comcast (CMCSA), 3M Co (MMM), Stanley Black & Decker (SWK)
In this video I am going to talk about how to have realistic expectations about the stocks you own and what they can provide you in terms of financial reward. In the long run earnings (operating success of the business) is what generates value for you the stakeholder. In the short run, emotions often rule and dominate primarily fear or greed. The real difference is that fundamentals are real, measurable, and enduring. In contrast, emotions are fleeting, transitory, and therefore short-lived. True long-term investors should take heed and the sage advice once offered by legendary investor Warren Buffett: “someone’s sitting in the shade today because someone planted a tree a long time ago.” Plant trees in your portfolios.
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Disclosure: Long GOOGL, CMCSA, MMM, SWK at the time of writing.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.