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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.