“A person should set his goals as early as he can and devote all his energy and talent to getting there. With enough effort, he may achieve it. Or he may find something that is even more rewarding. But in the end, no matter what the outcome, he will know he has been alive.”
—Walt Disney
PARADIGM SHIFT
Investing: Long vs Short Term
We save and invest for a multitude of reasons. Several common themes include:
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- Retirement
- College
- Leaving a legacy
- Small business purchase
- House purchase
- Car purchase
- Dream vacation
And when it comes to investing, the ultimate aim is to achieve these goals within the specified timeframe.
That means investing is not all about achieving the highest returns possible.
The highest returns come at the highest risk. And some types of risk do not add to the likelihood of positive outcome.
But even if we’re rolling dice with one hundred possible outcomes, where 99 of the possible outcomes lose money, there will still be that 1 in 100 person who lands on the lottery-winning number.
The thing is, we’re interested in achieving our goals, not staking everything on a slim chance of luck.
So that’s where long-term versus short-term investing is going to differ dramatically.
I like to think of the stock market a lot like physics. You have quantum physics on the smallest level which, from one moment to the next, is unpredictable and following from no apparent cause other than chance (whatever that is). But these outcomes on the quantum level add up to predictable averages, which become the laws we see in our day-to-day reality.
In the short-term, we don’t want to leave much up to chance, because the stock market is 99% random day-to-day.
In the intermediate-term, we can take some chances, but small and calculated, willing to give up some upside return in order to guard against the worst of potential bear markets.
In the long-term, even bear markets matter less and less. The number one importance for long-term investors (retirement, college, legacy, etc.) is that they’re invested during ALL uptrends. And that includes the very earliest stages and latest stages of bull markets, which are often the most difficult to identify in the midst of extreme pessimism or euphoria.
Most financial advisors focus on long-term planning because it aligns with their business model—keeping assets under management for extended periods. While this approach works well for retirement and legacy planning, it may not maximize opportunities for those seeking financial independence sooner.
That’s where my courses come in. I specialize in teaching investors how to capitalize on short- and intermediate-term opportunities with high-probability strategies that balance return potential with risk management. By doing so, investors can accelerate their financial growth and unlock new possibilities—whether it’s creating a personal slush fund or converting stock market gains into a thriving personal business with significantly higher return potential.
By understanding how to navigate different investment timeframes, you can take control of your financial future with confidence.