“Invest long term” is the what we usually hear from the successful investors. However, what does it mean to ‘invest long term’? Why is long-term investing better compared to short-term investing? Today, we explore these questions.
What is ‘Long Term’?
Everyone has a slightly varying definition for the term ‘long term’. For investors, long term could range anywhere from 3 years to a lifetime.
With our Conservative Net Asset Value (CNAV) strategy, our definition of long term is 3 years. If our stock does not perform within 3 years, we move on.
It is important for you to consider what your investment time horizons is, in order for you to refine your investment strategy.
Determining Your Personal Investment Horizon
In a nutshell, you can determine your investment horizon by asking yourself when you would need to withdraw your investment capital. For example, investors who are saving for a property purchase would have lesser ......