The Benefits of Long Term Investing: Lower Risk and Greater Stability

Long-term investing allows you to ride out market fluctuations and avoid the volatility that day traders must constantly navigate. Over extended periods, markets have historically trended upward, so even if you experience temporary losses, you are more likely to recover and see growth if you invest for the long term. Day trading, by contrast, exposes you to the risk of significant losses within minutes or hours due to rapid price movements, and most retail day traders lose money. Many day traders use stop loss orders to limit their damage on bad days. This protects them, but most investors know that the very best stocks tend to have very high volatility. Selling on a downtick of course can take you out of a long-term huge winner.
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Was upgraded today. Up 38% this year. Operating margins were up 32% last quarter and EPS +25%. However, US growth was only 9%. So, there's lots of room to run internationally. Continues to like it. Expenses will this quarter though will content to come.

New CEO announced today. 16x PE with great earnings growth.

Is -10% since May 3, but 18.5% this year. They sold but still own lots of Apple shares (2%). BRK did no buying or selling last month. Apple's weakness isn't helping BRK. Insurance is a great space during a risk-off market, but we're not in that market now.

Is hitting a 52-week low. It always trades poorly around its earnings report, but usually recovers. But this time, she doesn't see a recovery. They reported soft bookings, -6% YOY. Are now restructuring their services business, which she doesn't understand. Gross margins missed. She will likely trim her holdings.

Lots of pessimism. Beyond the markets, people are pessimistic because of what's going on in the US. People are thinking about how they don't want to go south of the border for travel. Investors are surprised to learn that their portfolios are more or less where they were at the beginning of the year. They're aware of the decline, but not of the rally.

It's interesting to see how market's have recovered. He's a bit surprised to see that last month was a very strong month, driven mainly by a lot of the tech names we see at the top of the S&P 500. 

Markets have done well, but a big decision point coming. We're now at a big resistance point. If we can break above that, we should continue on for the rest of the year.