1. the quality of being faithful and dependable, as in purpose; steadfastness of mind.
2. the quality of being enduring and unchanging; consistency, persistence, durability.
Successful investing starts with defining the time frame you have to work with and developing a plan consistent with that time frame.
Stick with the plan, recognizing and managing emotions caused by short-term market swings. Select investment funds that adhere to proven, common-sense disciplines likely to stand the test of time.
- a person who provides money for an enterprise, such as a corporation, in order to gain a financial return.
Investing in publicly-traded companies is no different than investing in a small business.
The ability of a business to make profits over many years and the price you pay to buy it in the first place govern financial returns over time. These are the fixed laws of investing, just as the speed of light is a constant, the c, in the famous equation E=mc2. Short-term price swings in the prices of publicly-traded stocks, often expressions of human behavior, do not change these fundamental truths. A portfolio of stocks and bonds purchased with a valuation discipline is the best way to compound wealth over the long term.
I believe that you must start by empowering yourself with knowledge and understanding. The term Constancy Investors highlights the few behavioral traits and common-sense ideas that are key to being a successful investor. Hover over these words and their definitions for a very brief introduction. Click on the Time Frame and Mindset and Exercising Common Sense tabs to explore and find tools to explain these traits and ideas in greater detail.
“In fields of specialized knowledge, we aim to render an account that is plain and simple, yet does no violence to the difficulty of the subject, so that the uninformed reader can understand us while the expert cannot fault us.
We try to keep in mind a saying attributed to Einstein—that everything must be made as simple as possible, but not one bit simpler.”
1962 December 14, Time magazine, A Letter From The Publisher, Time, Inc., New York.
(Online Time magazine archive; Accessed 2011 May 12)