I've noticed a lot of people are having a very short term investment mind set. An example of a short term investment mind set is like when you buy a property at $100K and selling it off at $130K for example, thus making a one time gain of $30K. Or even investing $30K into commodities like silver or sugar, and hoping the value will increase 2-3 folds in the next year or two.
Seldom do i met people who actually look into a long term perspective, earning through passive recurring income monthly or yearly.
Short term investing is like betting in soccer, a 50% chance of making 100% or a 50% chance of losing 100%. The adrenaline rush to win and the greed installed in human which makes short term investment more popular than long term investment where profits may come in small numbers but consistent. Short term investing can be profitable, or can turn into losses. It is like investing blindly, hoping to win.
Long term investment, however focuses on providing long term returns on your initial investment and knowing what business to invest in is the first step. It is by looking at the type of business the company is dealing with, whether it will quarterly or yearly increase in revenue and net profits. In short is to see if the company is profitable and will continue to be is what long term investment is all about. By holding a company that will provide consistent returns will eliminate the need to monitor the performance of the investment.
That is long term investment. So are you a short term or a long term?
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