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Pay attention to the longterm performance of a company from "summary" of The Intelligent Investor Rev Ed. by Benjamin Graham
One of the key principles that a wise investor must always keep in mind is the importance of looking beyond short-term fluctuations in the market and focusing instead on the long-term performance of a company. It is all too easy to get caught up in the day-to-day movements of the stock market, but this can often lead to making hasty decisions based on emotions rather than a rational assessment of a company's fundamental value. By paying attention to the long-term performance of a company, an investor can gain a more accurate picture of its true worth. This involves looking at factors such as the company's financial health, its competitive position in the market, and its growth potential over time. By taking a long-term view, an investor can avoid being swayed by temporary market fluctuations and instead focus on investing in companies that have a strong track record of success and a promising future outlook. It is important to remember that the stock market is inherently unpredictable, and short-term fluctuations are a natural part of the investing landscape. However, by focusing on the long-term performance of a company, an investor can reduce the impact of market volatility and make more informed decisions about where to allocate their capital. This approach requires patience and discipline, as it may take time for a company's true value to be reflected in its stock price.- The key to successful investing lies in being able to distinguish between short-term noise and long-term trends. By paying attention to the long-term performance of a company, an investor can make more strategic and informed decisions that are based on a careful analysis of the company's fundamentals rather than short-term market fluctuations. In doing so, an investor can increase their chances of achieving sustainable and meaningful returns over the long term.
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