Short Run
Categories: Financial Theory
No, it's not the sequel to an Eagles song. In the short run, anyone can look like a genius as an investor. Imagine a one-hole golf tournament. The best golfer likely won't win. It's a total crap shoot. Pick one stock for one one-year period and anyone can "win."
But that's not the game...not what real investors are hoping for. For most, it's all about the long run...the next 30 years before retirement, doing smart things, letting your dough compound in the markets and work for you, rather than your having to work for it. And you do this so that you can have a nice life and take your grandkids to football games and go fishiing...and not have to beg society to pay for you, because you didn't...think.
Ask Don Henley all about it.
