The Seven Timeless Strategies
for the Successful Investor
- Accept That Uncertainty is the Rule, Not the Exception.
When building long-term wealth, periods of uncertainty are the rule, not the
exception. But, despite such uncertainty, it is important to bear in mind that
the long-term progress of the stock market has been upward.
- Focus on What is Important and Knowable.
Since uncertainty is the rule not the exception, it is crucial to focus on what
is important and knowable versus important and unknowable. Such an investment
approach can help uncover investment opportunities during many different market,
economic and political environments.
- Be Patient.
At Davis, we believe a patient, buy and hold investment approach is the best way
to build long-term wealth. Such an approach allows investors to filter out the
noise, maintain their investment strategy and allow the power of compounding to
help build wealth.
- Expect Periods of Disappointment.
It is crucial to understand that even top performing investment managers will go
through periods of disappointment. By recognizing this fact, you may be less
likely to engage in unhealthy investor behavior and make unnecessary
modifications to your long-term investment strategy.
- Engage in Healthy Investor Behavior.
Having conviction in the investment managers you entrust your capital to and
working with a financial professional can help investors engage in healthy
- Have an Investment Strategy.
Investing is an emotional experience, so develop a "roadmap" to maintain your
focus and discipline necessary to build long-term wealth.
- Set Realistic Return Expectations.
Stocks have historically been the best performing asset class for growth of
capital over the long term. When planning long-term financial goals, it is
important to be a realist and not an optimist or a pessimist.