A Long-Term Mentality in a Shifting Market

Published: March 24, 2020

I recently stumbled across an article on The Motley Fool, and although it references the stock market, the mindset and perspective can very well be applied to the real estate market as well. 

The basis of the article is about having long-term vision. Right off the bat, Warren Buffett is quoted saying, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

In the stock market, and in all other markets for that matter, it is quite the roller coaster ride. There are many ups and many downs — some ups lasting longer than others, and some downs that may seem never ending. However, in the end, whatever goes down must go up, and vice versa. The key is to be patient and embrace long term vision through it all. If you fail to adopt a long term mentality during a ‘down’, you may miss the ‘up’.

This article reminds us of yet another time when Buffett outlined the importance of long term vision during turmoil, stating: “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

It is important to recognize that among the trials and tribulations that may occur during any sort of shift, there will inevitably be good things that come about — innovation, new discoveries, emerging businesses, just to name a few. However, remember your long term vision here. These innovations and new found discoveries will not happen overnight and may take time to surface.

In the current shift that we are experiencing, there are businesses that are benefitting. The article states that “thinking long term can even mean looking at stocks that have benefited from the COVID-19 scare in a different way. Gilead Sciences…. has moved higher thanks to its antiviral drug remdesivir, which has shown promise in treating COVID-19. But an even more important reason to buy Gilead stock is the opportunities for the company’s pipeline candidates, especially immunology drug filgotinib and long-acting HIV drug GS-6207.”

All that being said, long term vision will help you see past all of the ups and downs and focus on the progress and success that is bound to come up in the end.

This same long term vision goes for the real estate market. In Gary Keller’s book “Shift: How Top Real Estate Agents Tackle Tough Times”, he explains that “you can’t control the market but you can control your outlook and your response to the market… Know that while everyone won’t succeed in a shift, some will and anyone can… This is not just a short-term attitude you adopt, but a lifelong posture you take.” A long term mentality will help you to survive and thrive during a shift.

To read the full article on The Motley Fool, click here.

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