Time is Golden
It’s not a matter of Timing the market, it’s all about time IN the market!
Please read again and internalize this – it’s not a matter of Timing the market, it’s all about time IN the market! It is extraordinarily meaningful and quite profound. It’s important because it empowers the prudent investor to take their focus off of short-term stock volatility, which is unpredictable and therefore unknowable. In the long run, the successful operating results of the individual business invested in will drive shareholder returns.
Another thing to note that you might have lost about half of your original investment if you were out of the market during sixty of the best trading days, less than 1% of the total calendar time during the last two decades, really just a blink of an eye in the big scheme of things.
One should buy solid investments, and then just forget about them. Day by day, month by month, they go up and down, and most of that does not mean a thing in hindsight. You look back over the years later, and your solid investments have appreciated well and show good profits. When did those profits actually occur? Probably on one of those 20% of the time when it went up and the rest of the time, it does nothing. They often occur at unexpected moments.
Something about which I feel strongly is that it is not the things you buy or sell that makes you money – it is the thing you hold.