Posted by on Mar 17, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

 

By Jason Zweig  |   March 15, 2019 11:00 a.m. ET

 

True or false: The stock market is too focused on the short term.

The answer seems almost too obvious. Companies often appear to care only about the next three to 12 months. On Wall Street, the long term begins about 30 seconds from now and generally ends a few weeks later, at most.

Believe it or not, companies and investors can sometimes be too focused on the long term. That counterintuitive risk is suddenly looming large, given the way giant technology companies are generating ever-higher returns and setting huge goals for growth into the distant future….

 

To read the rest of the column:

https://www.wsj.com/articles/the-hidden-risk-when-you-own-stocks-for-the-long-run-11552662001

 

For further reading:

Books:

Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

 

Articles and other resources:

Michal Barzuza and Eric L. Talley, “Long-Term Bias” 

James Mackintosh, “In the Long Run, Fear of Short-Termism is Mostly Bunk

Data on long-term stock performance complied by Hendrik Bessembinder of Arizona State University

FCLT Global, “Driving the Conversation: Long-Term Roadmaps for Long-Term success

What Amazon’s Rise to No. 1 Says About the Stock Market

Can Big Tech Stocks Grow Without Limits?

Amazon’s 49,000% Gain: The Most ‘Super’ of ‘Superstocks’ Since 1926

What I Learned from Daniel Kahneman

The End of Quarterly Reporting? Not Much to Cheer About

A (Long) Chat with Peter L. Bernstein