Patience
We also believe in order to be successful over the long-term, investors need a
"counter-intuitive" mindset. Following the herd will eventually lead to poor results. Two of
the best teachers of this philosophy are quoted below:
In the stock market, the only way to get a bargain is to buy what most investors are selling.
Sir John Templeton
Be greedy when others are fearful.
Warren Buffett
Successful, long-term investing is not an easy process - one need look no further than the
bear market of 2008-2009 to prove this point. The swings between greed and fear can
drive investors to abandon their discipline at the worst possible moment.
We typically buy companies when they are temporarily out of favor and their stock prices
are depressed. Very rarely does one of our stocks immediately go up after purchase.
Because we focus on the long term when we make a purchase, we don't feel the need to
obsess over what happens in the next 3-5 weeks or 3-5 months. Partnering with a great
business as an owner rather than a trader enables us to not be swayed in our conviction
due to short-term market fluctuations.
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