Defining Common Approaches to Stock Investing
In This Chapter
Pairing stock strategies with investing goals
Deciding what time frame fits your investment strategy
Looking at your purpose for investing: Growth versus income
Determining your investing style: Conservative versus aggressive
“Investing for the long term” isn’t just some perfunctory investment slogan. It’s a culmination of proven stock market experience that goes back many decades. Unfortunately, investor buying and selling habits have deteriorated in recent years due to impatience. Today’s investors think that the short term is measured in days, the intermediate term is measured in weeks, and the long term is measured in months. Yeesh! No wonder so many folks are complaining about lousy investment returns. Investors have lost the profitable art of patience!
What should you do? Become an investor with a time horizon greater than one year (the emphasis is on “greater”). Give your investments time to grow. Everybody dreams about emulating the success of someone like Warren Buffett, but few emulate his patience ...