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Focus on longterm performance rather than short-term fluctuations from "summary" of The Intelligent Investor, Rev. Ed by Benjamin Graham
The essence of intelligent investing lies in the ability to maintain a long-term perspective, instead of being swayed by short-term fluctuations in the market. Investors who focus on short-term movements often find themselves caught in a cycle of emotional decision-making, buying and selling based on the whims of the market rather than on sound investment principles. By concentrating on long-term performance, investors can tune out the noise of daily market fluctuations and focus on the underlying value of their investments. This approach requires a disciplined mindset, one that is able to resist the temptation to react impulsively to short-term market movements. Benjamin Graham, the pioneer of value investing, emphasized the importance of a long-term perspective in his seminal work, The Intelligent Investor. Graham believed that successful investing required a rational and patient approach, one that focused on the fundamental value of a company rather than on its short-term price movements. In the long run, it is the underlying fundamentals of a company that drive its performance, not the day-to-day gyrations of the market. By taking a long-term view, investors can avoid getting caught up in the noise of short-term fluctuations and instead focus on the factors that truly matter in determining a company's success.- The key to successful investing lies in the ability to maintain a long-term perspective and to resist the urge to react impulsively to short-term market movements. By focusing on the long-term performance of their investments, investors can build a solid foundation for financial success and avoid the pitfalls of short-term thinking.
