The Master’s Minute – What’s the Point? (2 of 4)

March 26th 2019 | Posted in Blog, Master's Minute, What's the Point?

What’s the point of all this long-term investing stuff? I will be the first to admit that the day-trading mentality with which we are constantly bombarded sounds much more exciting!
 
At Master’s, we quickly grow weary of articles, tv shows and opinions that the media throws at us that they call investing. We like to remind ourselves and our clients that all these outlets are in the entertainment business, NOT the investing business.
 
When we start to integrate this into our thinking and peel back some layers, we realize why we are bombarded with the daily onslaught of buy and sell advice. The bottom line is that it is a lot more exciting to hear about what’s hot and what’s not than to hear about those stodgy, old, long-term investing principles that we subscribe to.
 
A chart of a stock that went up 30% in one day will attract more eyes than a 10 year chart of a moderate investment account that returned 6% a year.
 
So the next time you turn on CNBC, read an article in Barron’s about the next compelling opportunity or hear your brother-in-law discussing the merits of mining bitcoin, take it for what it is, entertainment! It may just be more fun to witness with that frame of mind!
 
What are your day-trading stories? How did they affect your understanding of investing?

Garrison R. North | CFP® Managing Partner

Email Garrison R. North

Related Posts