The WAITING is the HARDEST PART …
Average holding period for Equity Investments over past 50 years. This CLEARLY illustrates that people are NOT buying and holding for long periods - Ignoring Warren Buffet and Charlie Munger's advice!
Tom Petty sang it better, but Charlie Munger (long time partner of Warren Buffet of Berkshire Hathaway) said it often:
“The big money is not in the buying and selling. But in the waiting.”
It can be very difficult to be patient, but patience pays off, friends.
This chart is VERY TELLING …. because EVERYONE swears that they are BUY and HOLD Investors.
What is EVEN WORSE is that the typical investor is EACTLY THE SAME as your TYPICAL ADVISOR —- THEY ALL SELL LOW AND BUY HIGH!!
(That’s how you get rich, right?).
After all, when you FINALLY decide to make a change to your investments, you probably do what everyone does — BUY WHOMEVER LOOKS REALLY GOOD NOW!! It’s TYPICAL and its UNDERSTANDABLE.
BUT IT DOESN’T WORK!! IT IS GRASPING AT STRAWS!
You should use the Smart Structure Model to make the PROPER EFFICIENT ALLOCATION …. AND THEN WAIT. iF MARKETS GO UP, RESET PERIODICALLY TO TAKE PROFITS AND LIMIT RISKS. iF THE MARKETS GO DOWN ——- use your FUNGIBLE ASSETS TO “BUY THE STUFF ON SALE”
YOU SHOULD ONLY GET GREEDY WHEN THINGS ARE ON SALE (OR WE ARE IN A BEAR MARKET)
As Warren Buffet said, it's wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”
Use the Smart Structure Model to
Make the waiting Easy and Profitable!!
THIS ILLUSTRATES OUR EFFICIENCY!!
BEING EFFICIENT EVERY YEAR ILLUSTRATES HOW SMART STRUCTURE HISTORICAL ILLUSTRATIVE RETURN ANALYSIS. THIS DEMONSTRATES 1 TIME SHOWS ANNUAL REBALANCE.