The Biggest Gains Come to Those Who Wait
You don't make money when you buy a stock. And you don't make money when you sell a stock. Buying and selling are simply market motions. The way you make money in investing is, drum roll please, by waiting. Indeed, some very active traders may be able to consistently compound invested capital year after year but it doesn't happen often. The key to successful investing is determined by that time period between when you actually buy and when you actually sell. There is a very sophisticated word for that process: patience.
In 2008, Professor Gerald Martin of American University and Professor John Puthenpurackal of the University of Nevada, Las Vegas concluded a study titled "Imitation is the Sincerest Form of Flattery." The professors analyzed the Form 13Fs filed by Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) between 1976 and 2000. For the casual investor, a 13F is the quarterly filing that all investment funds with more than $100 million in assets must file with the Securities and Exchange Commission disclosing their investment holdings. The research uncovered some startling facts....456 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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