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With Investor Phil Town

InvestED: Ep. 204- Short-Termism

“Most of the time, the actions of fund managers are rational in the sense of protecting their jobs. They’re not rational when it comes to getting great long-term results. That’s why most fund managers never beat the market.” – Phil Town

In this episode, Danielle and Phil discuss why short term viewpoints in the stock market are terrible. When analysts upgrade or downgrade a stock and the price drops, it’s terrible. When companies miss on earnings and the market responds with stock price dips, it’s terrible.

Once you start having to hit a certain number every quarter rather than having to hit a certain number over the next five years, it becomes risky. What started as people wanting to get more information on company earnings has become a problem of short-term thinking.

Charlie Munger thinks that short-term investing is insane. He’s said in the past that he almost never has a transaction.

If you want to learn about how short-termism is hurting our market, join us on the podcast today!

Show Notes From This Episode

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Now if you’re feeling extra loving, it would be awesome if you left us a review on iTunes, too. Those reviews help other people find this podcast and Danielle and Phil also love reading them so that we can improve your listening experience. Just click here to review, select “View in iTunes”, then “Ratings and Reviews”, and “Write a Review” and let me know what your favorite part of the podcast is. Now go play!

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On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.
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