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