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In this blog I’m going to walk you through some of the investment units I have purchased over the past 25 years. Many of the units I have purchased have gone up right from day 1 and never had a period of time where the current value was less than what I purchased them for. However, about half the units I have purchased have been worth less than what I paid for them. This has always occurred in the first 5 or 6 years and that’s why I have always advocated a minimum holding period of 8 to 10 years. In my experience that’s more than enough time to offset any normal market correction that will always be right around the corner.
The bottom line is that I have never tried to outsmart or time markets and neither should you. I have just systematically bought and held for long periods of time. It’s also how my high-net worth investment clients do it as well. You can’t expect your home to always to go up from day 1 and never look back. There are always going to be short term corrections along the way that may cause the home to be worth less than what you paid for it. If this is to occur it will usually be in the first 5 or 6 years. My advice is not to worry and carry on. It will recover.
Finally in order to be a successful investor you need to accept this basic principal known as ‘the dance of the markets’. Corrections and volatility are normal and you should expect them. The key to overcoming them is to simply ignore them and stay the course. Think of it as playing 9 innings of baseball (a full game) and not 1 or 2 innings.
