What do you consider long term investing?

Discussion in 'Stock Market Education' started by Colebra, Oct 13, 2014.

  1. Colebra

    Colebra Well-Known Member

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    Holding a stock for 1 year? 5 years?

    Also, if you are a long term investor, do you use an "automatic sell if stock drops below X"?

    Thanks guys!
     
  2. springbreeze

    springbreeze Well-Known Member

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    I consider long-term investment as investment that is longer than 1 year. I've held on to stocks and funds for longer than 5 years. I think long term investment is about growing with the company and it takes years to grow with a company. At the same time, if you see a company about to go bust, it may be best to let the investment go before you lose everything.
     
  3. Peninha

    Peninha Senior Investor

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    I would love to invest and to be able to allow my capital to grow for 5 years, I think that is the correct way to invest.
     
  4. Sugarhill

    Sugarhill Guest

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    At minimum, I'd say that a year is the beginning of long term investing. That used to be the standard time frame for CDs and even those were considered to be the initial step into serious investments. If you can hold onto a CD as an adult for about five years, then I'd believe you really had a plan for wealth worth considering.
     
  5. cameronpalte

    cameronpalte Well-Known Member

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    I would generally say a minimum of 1-2 years, however, you could go to the Buffett extreme of 20+ years.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Buy it when the fundamentals make it attractive.

    Start to scale out of it if / when the fundamentals start to make it less attractive or not so cheap.

    Put it aside when it is no longer cheap, no longer growing, or its products or services are no longer so innovative, competitive, or unique and it starts to really lose its market share.


    If you really know what you're doing, you can consider betting against a few companies or even entire sectors that are really starting to deteriorate fundamentally.



    Most of this stuff doesn't happen overnight. It may take many months or many years. You may buy a stock at 20 years of age that you found no reason to sell at all that you still had in your portfolio at 100 years of age.
     
  7. gmckee1985

    gmckee1985 Senior Investor

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    Anything longer than a year can be considered long term investing. There really is no set time period for that. Personally all of my investments are long term, or in the stages of becoming long term. I like to look at the big picture and invest in stocks that I think have a lot of potential to grow in the coming years ahead. I don't do a lot of spare of the moment, spontaneous investing. I think it's important to plan for the future.
     
  8. troutski

    troutski Guest

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    I just go with the one-year period. That's when I start considering an investment to be long-term, and I've held a handful of stocks for longer than a year in the past couple years. Certain stocks you just know can be winners in the long run, especially when you're talking about some of the tech giants.
     
  9. caparica007

    caparica007 Well-Known Member

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    I think that long term means at least 5 years because it takes time for things to happen and for stock to value properly.
     
  10. Profit5500

    Profit5500 Senior Investor

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    I think one year is just a bit short to me. If anything maybe like 5 to 10 years to me sounds like long term investing. If you hold on dearly to that stock and not sell it. You have to have a really good budget and then know exactly where to make the investments. If we are talking about dividend stocks then you have to try holding onto the shares and observe the market carefully.
     

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