8) Stay the Course

John Bogle, founder of The Vanguard Group, stressed “stay the course” when it comes to investing. What does that mean?  In the most basic sense, it means to have an investment plan/strategy and to stick with it through thick and thin.

It can be difficult to “stay the course” with twenty-four-hour news cycles and universal internet access. Warren Buffet, one of the most successful investors, is famous for saying that once he buys a stock, he intends is to hold it “forever.” He is unfazed by short term stock prices.  Buffet paraphrased the great Ben Graham saying, “In the short run the market is a voting machine but in the long run a weighing machine.”

Successful investing can be counterintuitive. In many professions, the harder one works (more sales calls/more product launches/more legal briefs -the greater the success.  In many instances, limiting trading and avoiding taxes and high fees provides better investment results.

Remember, “motion doesn’t necessarily mean progress” when it comes to investment performance.  

Keep your eye on the real investing prize-maximizing long-term returns.

I hope you’ve found the above essay and previous ones interesting and thought provoking.  

Please feel free to pass any or all my essays on to those who you think may find them worthwhile.

If you have specific investment questions, I encourage you to seek advice from trusted investment professionals.

Thanks!