Holding core assets for the long term is an attractive investment strategy based on the belief in long-term economic growth and the sound development of a company's fundamentals to achieve sustainable investment returns. However, it is not as simple as you think to make money by holding core assets for a long time.
Holding core assets for a long time does have many advantages, and through long-term holding, investors are able to enjoy the dividends of long-term growth in the capital market. In the economic cycle, although there will be short-term fluctuations** and fluctuations, in the long run, the value of high-quality assets will continue to grow over time, bringing considerable returns. In addition, holding core assets for a long time can also reduce the frequency of transactions, reduce investment costs and risks, and better cope with market fluctuations.
Holding core assets for a long time does not mean that you will not lose money. The selection of core assets to hold is based on an in-depth analysis and study of the industry, the company's fundamentals, and the macroeconomic situation. Long-term holding can only be ensured if the selected asset has strong intrinsic value and a favourable long-term outlook.
Due to the uncertainty and volatility of the capital market, investors may need to face temporary financial losses or market value fluctuations. In this case, whether to insist on holding requires investors to have a stable mentality and solid rational judgment, which puts forward extremely high requirements for investors' self-operation and mentality adjustment ability.
In fact, proper long-term holding also requires constant monitoring and evaluation to ensure that the assets you hold are still in line with the core value of long-term investments. Over time, industry and company fundamentals can change, and the economic environment can also change significantly. Therefore, investors need to remain vigilant and adjust their asset holding strategies in a timely and effective manner to ensure that asset allocation is still in line with the long-term holding strategic plan.
Holding core assets for the long term is not a one-size-fits-all strategy, and it is not an investment approach that everyone can easily navigate. Holding core assets for the long term alone cannot guarantee a stable and substantial return on investment. Correct long-term holding requires full research and analysis and rational judgment, as well as considerable literacy in the investor's own mentality and operational ability. Therefore, it is important for individual investors to correctly understand and grasp the essence of holding core assets for a long time, rather than taking it easy. List of high-quality authors