Time should be your friend when you have done the right thing

In the investing world, you can only breathe well if the odds is in your favour, no matter if the market says you are wrong today, in unlimited period of time. That is why a long position in equity, with careful investing operation, is very comfortable to have.

The visible and invisible expiry option(s) attached to any kind of investment instrument can create enough mental pain - finding out whether you made money at the expiry date or so-called strike price.

How much time do we need to realise our desired result? Consider few scenarios I thought of.

1. To some extent, the top management, being incapable of taking out the problem out of the company, hurt the future value of the company. I had been there, watching it to 'burn' the good valuation of the company. It taught me that it is better to cut loss if you have no pulse of the top management.

2. Although the top management knows why they authorise short-term, mid-term, and long-term strategies through the board meeting, you would try your best to understand if it is suitable. With your limited information through reading and understanding of specific industry, you could sell the stock if you don't feel good about it.

3. We know that, when holding stock for a long time, the annualised return will decrease if there is no further upward price trend. It is true that you can never know when good things come as per your investing thesis. It is far reasonable to stop focusing on relative return and start focusing on absolute return. It is best to size your position and not be tempted to change your position before the good things come.

4. Warren Buffett compounded his invested money with such high return over many decades. We don't know how much leverage he used at his fund back then. We do know that he warned us about the leverage. With leveraged long position, uncertainty - through significant, sharp price decline - can affect you severely.

5. If you are not comfortable with certain things - super high gearing ratio or declining industry - about the company with other attractive things, it is probably better to do nothing (i.e. don't have to buy stock). This will help you to avoid unforced errors. I wish I did that when I am not sure about a conglomerate company (some attractive segments and other attractive segments).

6. Warren Buffet said that if you surround yourself with people who are better than you, you will get better result as much as they do. With enough time, you will succeed by learning directly or indirectly from them in doing the right things.

When I was asked to introduce anyone to him, I have not done so yet as I have no one in mind who can give you good benefit today and tomorrow rather than good benefit today and bad benefit tomorrow. I always tried to conduct myself in that way to give my friend many good benefit today and tomorrow when I was asked by my friend(s) for my opinion.

To complete my blog post, you need to be patient with time and success will come to you naturally as a result of doing the right things.