The “Tyranny of the Immediate” – What It Is and How to Avoid It

Hello, Reader. We all know the investing axiom “buy low, sell high.” Too often, though, we do the exact opposite. We get spooked out of a great stock, either because its price falls for a while or because public opinion turns against it. We allow our doubts to overrule our judgment… and end up with a lack of confidence to stay the course. I call this type of mistake the “Tyranny of the Immediate.” This tyranny prioritizes short-term results over long-term potential. It demands being right… right now. But by doing so, it often sabotages the opportunity to capture large long-term gains. That’s because the stock market is not linear. It is the opposite. It sometimes gyrates as wildly as a Water Wiggle on its way to producing gains. (Confused millennials and Gen Zers can Google that 1960s product name.) Even legendary stocks will try the patience and endurance of investors from time to time… en route to delivering their market-trouncing returns. To underscore this point, let’s use today’s Smart Money to revisit the early days of Berkshire Hathaway Inc.’s (BRK.A) multi-decade, wealth-generating run....

InvestorPlace - 4/25/2024 3:30:00 PM More News for BRK.B
Stock Analysis for BRK.B
Related Stocks: BRK.A,BRK.B,BRYN-GF,BRYN-GM,BRYN-GY,BRYN-GH,BRYN-GS,BRYN-GI,BRYN-GD,BRYN-GB,BRK-QH,FCX,FCX-MM,FPMB-GF,FPMB-GM,FPMB-GY,FPMB-GS,FPMB-GD,FPMB-GB,AIOM