Agnico

“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
We love this quote because it offers perhaps the best insight into how Warren Buffett approaches active and passive investment debate.

Siding with passive investor legends like Jack Bogle, the founder of Vanguard Group, Buffett urges that we pick our investments wisely — and be ready to hold on to them for the long haul if we wish to see real rewards.

In this quote, he sets a clear divide with the emotional life of day traders, who prefer to scour markets looking for short-term aberrations instead of fundamental long-term growth.

Buffett preaches that the smart investor should also assess a stock by the company’s strengths and weaknesses, looking for long-term advantages it can win within its industry (that is, the fundamentals). This quote also reinforces the previous two quotes, underscoring a philosophy of patience and rational action.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

This quote forms a foundational pillar of Buffett’s long-term investment ethos. What he is saying here is that — in life as with investing — you have to think about the grand trajectory of things.

Overall, there is no better time to start thinking about that path than today. A tree takes time to grow, and so will most smart investments. Start early, be patient, and let your money grow.