What Is Long-Term Investing? It Actually Is About the NOW
One of the key advantages of value investing is having a long-term investing perspective.
However, I feel like many don't exactly understand what does it mean to have a long-term investing mindset. It is not about buying something now and leaving it there for 50-years. It is about looking how what can happen in the next 2, 5, 10, 20 and even 50 years is reflected in the current price. Thus, having a long-term perspective in the current environment is one of the big advantages we as value investors have.
It is about pricing in things that the market, having a short-term orientation, doesn't look at and doesn't price in. Then, on investing horizons, what usually happens is that value gets unlocked in a time period between one and five years. Thus, value investing is not about waiting forever but is about being happy to hold forever what you have bought of value, even if the value doesn't unlock that fast.
For a deeper explanation of the above, some examples, enjoy the video: