204- Short-Termism

For show notes and more information visit investedpodcast.com.

In this episode, Danielle and Phil discuss why short term viewpoints in the stock market are terrible. When analysts upgrade or downgrade a stock and the price drops, it’s terrible. When companies miss on earnings and the market responds with stock price dips, it’s terrible. Once you start having to hit a certain number every quarter rather than having to hit a certain number over the next five years, it becomes risky. What started as people wanting to get more information on company earnings has become a problem of short-term thinking. Charlie Munger thinks that short-term investing is insane. He’s said in the past that he almost never has a transaction.

For show notes and more information visit investedpodcast.com.

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