Buffett's Long-Term Focus Keys Investing Wins
• Warren Buffett's long-term perspective has been key to his investing success. He focuses on business fundamentals over years and decades rather than reacting to short-term news and price movements.
• Having a long-term investing horizon of at least 5-10 years gives you an advantage. Stocks tend to rise over longer time periods.
• Identifying winning stocks over the long run means focusing on enduring competitive advantages, growth potential, improving profits, and reasonable valuations.
• Netflix is an example of a dominant company whose stock was battered due to short-term worries, but has soared 157% over the last 18 months.
• A long-term perspective allows you to capitalize when great companies face temporary setbacks that drive their stock prices down to attractive levels.