I can remember having that “light bulb moment” early in my career.  It was the late 90’s, and I was eager to find out what the “secret sauce” was that gave investors an edge.  I can remember analyzing the past performance of many, many money managers and continually discovering a common theme.  Those managers with better long-term track records proudly admitted that they paid less attention to shorter time frames.  They didn’t care what the stock market was going to do in any one, three, or even five year period.  Those who ended up with better returns than most of the other managers cared more about holding onto the stocks of businesses for longer periods of time and didn’t allow short-term volatility to get under their skin.

This is how it began to dawn on me: maybe it wasn’t important to try and figure out what the market was going to do, in order to be a successful investor.   > SEE MORE

Posted by:

Pete Dixon, CFP®

Partner and Advisor