MacNicol’s Monthly Commentary – November 2019

One of the things that working with the MacNicol team can do is help you avoid investment myopia, the natural tendency to focus on the short-term. Apart from helping investors avoid “bubbles” partnering with us can allow your overall cost of investments to fall. In James Montier’s little book [it is literally the size of 2 smart phones glued together] “The Little Book of Behavioral Investing”, Montier notes that the average holding period for a stock today is about 6-months. Back in the 1950s and 1960s investors use to hold stocks for 7 to 8 years. That is quite a difference and certainly one that can be explained by the general computerization of pretty much everything. But constantly buying and selling stocks does not actually make any sense. Such a myopic focus does not jive especially well with a more fundamental, and not to mention safe, view of investing.


 

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