Key insights
- The author argues against market timing and advocates for a long-term investment approach, suggesting that investors should hold stocks of fundamentally sound companies indefinitely. Diversification is recommended to mitigate the risk of individual company failures. The core idea is that the market is designed to provide returns over the long run if the initial investment is reasonable.
I’ve noticed a thing in this subreddit where people want the perfect entry on something and then they want to sell right before the crash. You don’t have to do that. If the price long term makes sense you never have to sell unless something changes. Like I saw people say tsm is overvalued… is it? What if it’s 20 percent higher in a year? Then 10 percent higher? Then a flat year, before going up for decades. You can apply this to anything where you actually trust the business to just do anything and not fail horribly. Some fail which is why diversifying can be good if you’re too afraid to buy good companies. But in theory you never have to sell anything because the market is designed to return money if your entry wasn’t horrible.