Short-term Pain for Long-term Gain Investors and Short-term Time Horizons

Conceptualize Long-term Ideas and Achieve More

I like to talk about the long term with management because that’s how you really determine if someone is going to create business value. Most stocks are reasonably priced in the short term – it’s the long term where you’re most likely to put a different probability on something happening than someone else does. The human brain is incapable of conceptualizing something vastly different from what the situation is today. But the biggest-money ideas are those where the changes are far beyond what you can conceive today. The closer you can get to conceiving those types of changes and the higher the probability they might happen, the more likely you are to find big winners.