Time as a Partner: Thinking Long Term
Looking beyond the next quarter to find businesses that can reward patient shareholders.
This blog is not about chasing the next quarter’s earnings pop, but about identifying companies where time itself becomes a partner, where the longer you hold, the more the odds of outsized returns shift in your favor. Markets often tempt investors with short-term noise, but true wealth is built by owning businesses that steadily expand their earnings power, strengthen their competitive advantages, and allocate capital wisely year after year.
The beauty of long term thinking in investing is that usually markets are very efficient in discounting 6 months or 1 year or sometimes even 2-3 years of earnings growth but most of the times markets cannot discount earnings 5-7 years out as those earnings look highly uncertain. But when one thinks how the business can shape in such time frame, one can truly appreciate that the upside can be multiples of the original investment.
The same thought is embedded in this tweet from an esteemed investor.
In this piece, we’ll look at stocks that carry this potential, companies that may not sparkle overnight, but have the ingredients to compound quietly and deliver extraordinary outcomes to long-term shareholders.
Before we go ahead, I want to give shout-out to Portseido whose product I just love 😃
Portseido helps in tracking investments in both Indian stocks and global stocks. It lets you create multiple portfolios and see performance by each portfolio as well as all combined. It connects with Indian brokers and global brokers such as IBKR and several others and also gives option to sync investments located in a google sheets.
What I like about Portseido is we can see IRR returns in three ways - MWR (Money-weighted IRR), TWR (Time weighted IRR), SR (Simple IRR)
I really like this view to know where my PF is standing 😀 (PS: This is just descriptive table and not my real returns view)
One can also see returns by each month and by each year in this view
You can signup for free trial at Portseido and track all your Global and Indian investments in one place at - Portseido.