Finance 0

What Kind Of Stocks Should Long Term Investors Own?

By Kurt Osterberg · On February 7, 2016

By “Chowder”

The question comes up again and again; “where do you put your money?” [Well,] there is a way to invest that makes sense, that’s easy to implement, and that has a high chance of succeeding in meeting your long-term goals at the end of the road. [Let me explain.]

There is, if

you’re a long-term investor, a person that can look out a minimum of 10 years and more and

if you are a saver and builder, for people who understand (or want to understand) that the forces of time, modest and reliable growth, and compounding are on their side.

Investing means investing … the methodical accumulation of capital through a sensible and disciplined plan that recognizes that “shares” represent a partnership in a real and going business. Your plan, very simply, must recognize that you will manage your investments by actually being an investor … a passive partner in a real and going business.

There is a way to earn solid returns on your investments over the long term with the lowest possible risk and it’s an approach that can

get you off the hook of information addiction,

free you from the need to constantly keep up with the latest developments, and the opinions of a million pundits.

In effect, you can invest in stocks without “playing the market.”

When implementing a strategy, one goal, in addition to seeing your capital grow, is to sleep well at night. To be sure, your portfolio will go up and down, this can never be avoided if you hope to have reasonably good long-term gains, but the downs won’t bother you because you will understand why prices have declined, and you’ll have a high confidence level and a clear vision that prices will rise over the long term.

No investor can hope to succeed without having the ability to stick to a plan. You can’t let your convictions be shaken or you’ll jump from pillar to post the moment times become difficult, and in the end, you’ll have little to show for it. However, if you are comfortable with what you are doing, and you have confidence in what you own, you will stick with your plan. This level of confidence can be achieved because your strategy will be based on common sense.