Investors can easily get sidetracked by market fluctuations. We’re bombarded with news headlines, social media updates, and the constant buzz about the “next big thing.” But at AFIA, we believe that true, long-term investment success hinges on a less glamorous, yet far more powerful virtue: patience.
We focus on identifying fundamentally sound companies that are currently undervalued by the market. This approach requires research, careful analysis, and the conviction to hold onto our investments even when they’re out of favor. It’s analogous to planting a seed: we evaluate our choices, make our selections, and then… we wait.
The market, however, is rarely patient. It’s driven by emotions, short-term sentiment, and too often, exuberance or fear. This can lead to significant price swings that may have little to do with the underlying value of a company. During these periods, it can be tempting to second-guess our investment strategy, to sell low and chase after the latest “hot” speculation.
But it’s in these moments of market volatility that patience becomes our greatest ally. Warren Buffett, one of the most successful investors in our lifetime, is said to have quipped, “The stock market is a device for transferring money from the impatient to the patient.” This simple statement speaks volumes about the real cost of impatience in investing.
Imagine you bought your house last year. Would you panic and sell it at a loss because the real estate market experienced a downturn this year? Probably not. You understand that short-term market fluctuations are normal, and you’re focused on the long-term. The same principle should apply to investing in businesses.
We believe successful investing is about understanding the inherent value of a company and having the patience to wait for that value to be recognized by the market. It’s about focusing on long-term fundamentals, not short-term noise.
We understand that market volatility can be unsettling. That’s why we’re here to provide you with the support and guidance you need to stay the course. We believe that by adhering to our disciplined approach and exercising patience, we can position your portfolio for long-term success.
We’re available to discuss your investment strategy and answer your questions. Please call us – we’d love to hear from you!
Disclaimer: This article is for informational purposes only and does not constitute personalized financial advice. Consult with a qualified financial advisor before making any investment decisions.
Eric Ball, CFA
Managing Director & Chief Investment Officer
America First Investment Advisors, LLC
Omaha, Nebraska
This post expresses the views of the author as of the date of publication. America First Investment Advisors has no obligation to update the information in it. Be aware that past performance is no indication of future performance, and that wherever there is the potential for profit there is also the possibility of loss.
