Generally I agree but let me add 3 points to that...
1. LTH on compound accretion will enjoy far more gains and loss on paper than newer holders. As an example, if say you have $30 average, a $0.39 move to $161 in the SP like today nets you 1.3% accretion. Those that bought at the closing price of $160.61 yesterday. Will only have clocked 0.24% in accretion.
2. By far the biggest benefit to LTH is the optionality. Let's look at another example. Those with $30 holding cost on say 300 CBA units. Buying another 100 units today at the current price of say $161 ($16,100 cost) and you will averaged up to 400 CBA units at $62.75. A holding in a much better footing...
3. My personal favourite. Any SP volatility today. Hard as it is to live with; in 10, 15, 20 years from now... It will just be a blip on the chart.
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