It's hard to know how you'll react to decline

You may feel that everything will be fine if stocks fell 30%. You may even see it as an opportunity.

But stocks fall 30% because there's a collapse, a terrorist attack, or a pandemic. In that context, you may instead switch to a survival mindset and not have the endurance you imagined.

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MORE IDEAS ON THIS

"The future is much like the present, only longer."

DAN QUISENBERRY

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745 reads

Long term is more about flexibility

A long term horizon with a set end date is as reliant on chance as a short time horizon. You don't know what the world will look like in ten years' time.

A superior view has a flexible end date. It is true that time is compounding's magic. But the odds of ...

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442 reads

Patience is often stubbornness in disguise

The world constantly changes, which makes changing your mind essential. Long-term thinking can become a crutch for those who are wrong but don't want to admit that something used to be true, but the world moved on from there.

Doing long-term thinking means identifying when you're patient o...

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488 reads

Your belief in the long run isn't enough

Your investors, coworkers, spouses and friends have to sign up for the ride. Being right is one thing. But you also need to be able to convince those whose support you rely on.

An investment manager who loses 40% can tell his investors, "We're in this for the long run,...

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455 reads