My best returns came with a long holding period.
Tata Elxsi, ONGC, ITC, HUDCO, etc… All these became Multibaggers for me & gave bumper profits. All were wonderful business bought at undervaluations. I rarely overpay or buy overvalued businesses because it’s difficult to make money when you buy expensive stocks.
After buying stocks cheap, I had to hold them for months & couple of years.
In investing, compounding plays a big role.
In the later part of your investing cycle you make the most money.
The fact is that, the longer your holding period the bigger are the returns. The problem is, ‘most’ people lack patience & jump out of stocks at the very first signs of troubles into markets.
If you have patience, you by default have an unfair advantage over other investors who are going to chicken out during tough times.
Patience & tolerance are 2 big factors, which helps one hold stocks & helps one make money from stock market.
