{"id":1271,"date":"2012-09-26T05:00:24","date_gmt":"2012-09-26T12:00:24","guid":{"rendered":"https:\/\/masonmyers.com\/?p=1271"},"modified":"2015-01-28T12:58:43","modified_gmt":"2015-01-28T20:58:43","slug":"long-term-investing-definition","status":"publish","type":"post","link":"https:\/\/masonmyers.com\/long-term-investing-definition\/","title":{"rendered":"Honey, I Shrunk the Definition of “Long-Term Investing”"},"content":{"rendered":"

Defining Long Term Investing<\/h2>\n

Three years is “long-term investing” according to a discussion I attended last week. \u00a0The discussion was among a handful of family office investors who help manage money for Haim Saban (participated in sale of Fox Family to Walt Disney), Eric Schmidt of Google, a wealthy Chinese family, and others. \u00a0Endowments and foundations used to be long-term oriented investors and they are now feeling the short-term pressure and are being measured quarterly against their peers.<\/p>\n

\n

The single greatest edge an investor can have is a long-term orientation,<\/p>\n

says Seth Klarman of the Baupost Group, a renowned value investor with an excellent track record over several decades.<\/cite><\/p>\n<\/blockquote>\n

Investment Hold Period<\/h3>\n

Here is my impression of the optimal investment hold period for various types of investors:<\/p>\n

\"Long<\/a><\/p>\n

Investing & The Long Term Advantage<\/h3>\n

In a world where investors need every advantage they can find, being able to hold an investment for the long-term is a big advantage. \u00a0Nothing can be more beautiful than a good business compounding in value over a long period of time. \u00a0It also helps avoid the problem of having to sell a good company and then find another company to replace it (sometimes, it is very difficult to find something as good). \u00a0Some family offices for wealthy families still recognize that their ability to hold investments over the long term is one of their core strategic advantages. \u00a0That also used to be the situation for the best managed endowments (Harvard and Yale), but it seems that has been shaken a bit by the extreme market pullback several years ago that left many of them in need of short-term cash. \u00a0Thus, endowments and foundations are measured quarterly and have much more short-term pressure than before.<\/p>\n

If you own a business and are looking for an investor\/partner<\/a>, you certainly should understand the investing time horizon for your partner to make sure you are aligned with them. \u00a0I am grateful that my investment partnership, Greybull Stewardship<\/a>, is set-up in a way to let us hold good investments for the long-term.<\/p>\n

\n
Categories:Business Financing & Funding<\/a>, Competitive Advantage & Differentiation<\/a><\/span>
Tags:Berkshire Hathaway<\/a>, Business Growth<\/a>, Business Growth & Opportunities<\/a>, Competitive Advantage<\/a>, Differentiation<\/a>, Financial Strategy<\/a>, Financing<\/a>, Greybull Stewardship<\/a>, Investment<\/a>, Investment Strategy<\/a>, Private Equity<\/a>, Venture Capital<\/a>
<\/span><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Defining Long Term Investing Three years is “long-term investing” according to a discussion I attended last week. \u00a0The discussion was among a handful of family office investors who help manage money for Haim Saban (participated in sale of Fox Family to Walt Disney), Eric Schmidt… Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,5],"tags":[30,97,79,38,96,84,47,13,86,121,16,15],"yoast_head":"\nFinancing And Funding | Investing, Investment | Mason Myers Business Blog for Owners, Investors<\/title>\n<meta name=\"description\" content=\"Well schooled in investing, business owner & investor Mason Myers offers sharp insights into investments, financing and funding on his business blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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