Those with long-term conviction will reap the rewards. We have already witnessed quite intelligent investors being shaken out. There are accumulators at 30 cents.
The hardest aspect of achieving the fabled 100 bagger is having the patience and conviction to hold on and not take profit despite big percentage gains. Patience is your biggest asset when investing in a great business. Time always pushes out the weakly convicted and creates opportunities for those with a long-term perspective.
The greatest flaw in the short-term investor is they think great business performance is always linear and they can simply buy on the dip. But sometimes the dip never arrives.
The investor that always worries about day-to-day business activities such as ‘hatching the plan, meeting the customers, executing the plan’ etc. will sell at any sign of imperfection. Since no company is perfect, this means they will always sell too soon. Short-term investors will accept a 25% gain because they didn’t spend the time to develop the conviction and foresight to see the next 1000%.
A successful long-term investor today needs to be incredibly focused on knowing what they own better than others. This means they cannot depend on others for their due diligence. You can borrow someone else’s stock ideas but you can’t borrow their conviction. A multi-baggers journey is filled with the corpses of highly intelligent-articulate naysayers. There isn’t one great stock or company that wasn’t credibly doubted all the way up.
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