It is pretty apt to bring this topic up at the current juncture because there is increase volatility in the global financial markets due to the upcoming US elections. With higher volatility, it increases the uncertainty of our entry points because the likelihood of an investor buying at a wrong price can occur at a much higher rate. This generally discourages investors from jumping in, in fear of making a wrong move. However, this issue can be circumvent with an adequate time horizon built into the overall action plan. Therefore, it would be important to understand how our time horizon affects our investments especially during turbulent times.

Risk decreases over time (for most quality companies)

It is true that if you would have bought into a company which performs poorly consistently for many years, you would have suffered increasing amounts of paper loss. However, if you would have invested in a company...