InvestorQ : What is long term investing? How long is that?
Abhi Yadav made post

What is long term investing? How long is that?

Mitali Bhutta answered.
3 years ago
Investing is not a timeless activity. Warren Buffet may have said that “My time frame for investment is forever”. But you obviously cannot invest that way. Don’t take a 1-year perspective to invest in equities. Keep a minimum time horizon of 5 years and on the higher side, you can set according to your financial needs. I will give you an example of Infosys. The stock was trading at Rs.100 around 1995-1996. Then nobody thought that this company will give big returns. But that is what happened. If you have held Infosys for the last 20 years, you would be able to retire and go to some quiet place in your village and relax for the rest of your life. But such things do not happen in 1 year. It takes a long time. First companies have to become big, then they have to make money. Companies like Flipkart are still making losses.
If you are investing in equities, look at least 5 years at the very least. But you also got to buy the right stock. If you bought Kingfisher in 2010 it will be worth nothing today. If you bought a sound company like DLF in 2007, you will still be losing money even after 11 years. It does not mean that any stock that you buy will become like Infosys. No, that is not how it works.