Benjamin Graham, a legendary investor who showed Warren Buffett the ropes, once said, “In the short run, the market is a voting machine, but in the long run it is a weighing machine.”
What was he talking about?
If you are watching short term movements of the stock market and think you can figure out what it is going to do over the next hours or days you are on the wrong track. But if you want to know which company can keep delivering growth for its shareholders long-term, go with the company that makes the best product.
One of the companies which follows this philosophy is Amazon.
CEO Jeff Bezos states in his 2013 newsletter to shareholders, “Amazon.com Letter to Shareholders,” he stated “We don’t celebrate a 10% increase in the stock price like we celebrate excellent customer experience,” said Bezos. “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas. Take a long-term view, and the interests of customers and shareholders align.”
This is the mentality that investors need to comprehend and understand.
A company which has products and services which the people want will continue to grow. They will spend their time and effort on providing more and more because they are aware what the people are buying and utilizing in their lives.
Traders use mathematical formulas and act on what the numbers tell show them, ignoring the psychology of long term investors. Recognizing companies which have created a product and /or service which the public wants is not an easy task.
However, the stock market has a multitude of companies which do just that.
If your belief system is one of patience, diligence, and perseverance; in other words, long term investing and need help discovering companies which will qualify, then now is the time to hire a professional.
Let’s have a conversation
Let’s get together, face to face. I will help you experience — and understand — how your money will grow in the world of long-term investments. Let me show you how much fun it can be!
Call me, Vicki L Wille, today at 702-878-9562. Or click the button below and…