The Relationship Between Value Investing and Long-Term Investing - Galaxy Secure Compliance Cryptocurrency Exchange Platform

"Time is a friend of excellent companies,

Enemy of mediocre companies."

You might think this principle is dull and unremarkable,

But I learned it through profound lessons—Warren Buffett

People who focus on the long term

Have a huge competitive advantage over those who focus on the short term.

— Jeff Bezos

Value investing is generally long-term investing,

But long-term investing does not automatically equal value investing.

A period of good operational and stock price returns,

Does not necessarily mean it is value investing.

— Deng Yongping

Many people believe that value investing means long-term investing,

And this long-term is disliked by many,

Difficult to sustain,

So they think it’s very hard.

Some people I know,

Say they agree with value investing,

But because it requires long-term commitment,

They feel it’s less profitable than short-term trading,

And therefore choose not to learn or practice value investing.

I can only smile,

Because I know he thinks my process of holding ten-bagger stocks is too turbulent,

Takes too long,

And cannot achieve his goal of quick short-term profits or large gains.

In fact,

It’s precisely because they don’t understand value investing that they find it difficult,

And believe that the required time is very long.

Da Dao Deng Yongping once said, “Value investing is generally long-term investing,

But long-term investing does not automatically equal value investing,”

Perhaps everyone knows,

Warren Buffett often says,

Coca-Cola is a stock he will never sell in his lifetime.

Lin Yuan says,

He only buys and never sells Kweichow Moutai,

Will never sell in his lifetime.

Fisher said Motorola,

Texas Instruments will never sell easily due to large gains during holding,

They are to be held for life.

These are obviously long-term investments,

And also,

They are value investments.

Moreover, these individuals first engaged in value investing,

And after reaching a certain stage,

Continued to hold,

Forming long-term investments,

Even considering this long period as a lifetime.

So,

We can see,

Value investing comes first,

Followed by long-term investing.

This is the sequence and causal relationship.

Long-term investing is the result,

Not the cause,

Not inevitable,

If the object of value investing

Changes, for example, if the fundamentals deteriorate irreversibly,

There’s no need to hold on just because it’s long-term investing,

It should also be cut.

Therefore,

From this perspective,

Those experts who hold stocks of their successful companies and say they will never sell,

Are based on the development of the enterprise itself,

Because these excellent or even great companies

Have been consistently earning good, satisfying free cash flow for investors,

That’s why they say so and hold long-term.

Here, the cause and effect need to be clarified,

Don’t blindly hold just because of long-term holding.

Long-term holding is the result of continuous tracking of the company,

But not an inevitable result.

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