InvestorQ : Do successful investors always focus on long-term strategies only?
Rashi Mehra made post

Do successful investors always focus on long-term strategies only?

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Anjana Aiyar answered.
3 years ago
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One of the basic things you need to do to be a successful investor is to have a long-term strategy. Successful investment strategies are all about themes that hold you in the long run. As an investor, your goal is to primarily combine the best of growth and value. Growth companies are the ones that will give you the virtuous cycle of positive price movement, P/E re-rating, and profit growth to match up with these valuation re-ratings. A solid investment strategy is based on 2 key approaches. Firstly, you adopt a value approach and try to buy into future leaders at low valuations. Eicher in 2009 or Escorts in 2012 were all examples of stocks that were quoting at deep value. Once the company starts performing, the valuations start going up and that is when you need to treat it is a growth stock. Most important thing is not to waver in this investment approach.
What differentiates a good investor from a great investor? It is the ability to hang on to winners and exit losers rapidly. That is the difference. Otherwise, both may be equally adept at trading in the market and both may be playing the game right. It is this ability to right for long and shortly wrong is what makes a difference.
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