What does time mean for investment?
Time is not only an external existence, but also an internal existence and spiritual existence. Time exists in everyone's heart, everyone's mind. If there is no one in this world, or in other words, there is no time in one's heart, then there is no time in this world. Usually time seems to have a beginning and an end, such a time, we call it a time period. Real time has no beginning and no end, and no one can tell the beginning and end of time.
Time is the mystery of many things, and it is in time that all problems are formed and solved. Leaving the dimension of time, many things become meaningless, and life is the most typical of them. Similarly, time urges everyone to be merciless. It can even be said that the most authoritarian thing in this world is time. However, time is still time, and its footsteps will not stop even for a second.
For investment and investors, time is also very important. For those who do not invest, time will depreciate money, and the longer the time, the more worthy it will depreciate. Even saving cannot solve the problem of money depreciation due to time. I have never seen anyone on the rich list through saving. To fight the devaluation of money caused by time, investment is necessary. Even for investors, the type and style of investors are different, and the meaning of time is completely different. Those who pursue rapid wealth prefer short periods, and those who are willing to get rich slowly embrace long periods.
The two most common mistakes in investment are also closely related to time: one is the purchase of inferior assets that cannot stand the test of time; the other is the sale of high-quality assets that can stand the test of time. The common feature of these two errors is that there is an error in the judgment of time. Whether an investment can stand the test of time is a question every investor has to answer.
Great investors find ways to make their investments longer than their lives. For conservative value investors, the appreciation of investment is realized through time, and the return on investment is proportional to the length of time. In the eyes of conservative investors, investment is simple, make the right investment decision, and leave the rest to time. The longer the time, the more value-added. Some things in the world need to be fast, such as a 100-meter race; some things need to be slow, such as investment. If investment blindly pursues fast, it will be farther away from the goal.
Time is the most just. All investments must face the test of time. You trust time, and time will give you back. The realization of return on investment ultimately depends on time. Time is the helper of correct investment, and time is the opponent of wrong investment. Stock traders don’t trust time. They think that the longer the time, the greater the risk, and there will be more nights and dreams. Stock traders are scrambling for the day, and investors take it easy. Therefore, in the eyes of conservative value investors, the safest and most realistic investment method is to make time their strongest ally. Only choosing to invest in outstanding companies that can stand the test of time is the key to successful investment.
Some people say that the secret of value investing is compound interest. However, it was time that accomplished the miracle of compound interest. With enough time left, there will be no miracle of compound interest, and of course there will be no increase in wealth through compound interest. Many people have said that long-term investment can greatly reduce taxes and transaction costs. This is certainly true. Not only that, if short-term investment greatly increases investor anxiety, long-term investment can greatly reduce investor anxiety; if short-term investment increases risk, the latter reduces risk. If each investment time is too short, investors will have to face new investment decisions, the risk of investment errors will be greatly increased, and anxiety will also be greatly increased. If you want to reduce the probability of investment errors, if you want to rest well every night, it is best to choose long-term investment.
Some people say that patience is more important than wisdom. Patience is related to time and consists of two parts. One kind of patience is to wait calmly before investment, and one kind of patience is to wait calmly after investment. Together, these two kinds of patience, and over time, can make great investors. The character of patience applies to all great causes. The person who can continue to succeed is the person who puts the period of success longer.