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Focus on the long term from "summary" of The Little Book of Common Sense Investing by John C. Bogle
The key to successful investing is to focus on the long term. This means looking beyond short-term fluctuations and market noise, and instead focusing on the big picture. By taking a long-term view, investors can avoid getting caught up in the emotions of the moment and make more rational decisions. One of the main reasons to focus on the long term is that it allows investors to take advantage of the power of compounding. Over time, even small gains can add up to significant wealth if given enough time to grow. By staying invested for the long term, investors can benefit from the exponential growth that comes from compounding. Another reason to focus on the long term is to avoid the pitfalls of market timing. Trying to predict short-term market movements is notoriously difficult, and even the most experienced investors often get it wrong. By focusing on the long term, investors can avoid the temptation to try to time the market and instead stay invested through market ups and downs. In addition, focusing on the long term allows investors to take a more disciplined approach to investing. By creating a long-term investment plan and sticking to it, investors can avoid making impulsive decisions based on short-term market movements. This discipline can help investors stay on track and avoid making costly mistakes.- Focusing on the long term is essential for successful investing. By taking a long-term view, investors can benefit from the power of compounding, avoid the pitfalls of market timing, and take a more disciplined approach to investing. By staying focused on the long term, investors can increase their chances of achieving their financial goals and building wealth over time.
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