- They own the same investments for many years. Investing is not a risk-free endeavor and your investments will have their "ups and downs." But long-term investors choose quality investments and stick with them through good times and bad.
- They don't deviate from their strategy. Long-term investors establish a strategy based on their individual needs, goals, preferences, risk tolerance and time horizon. Then, once this strategy is in place, they follow it steadily through the years.
- They invest in companies not stocks. Successful long-term investors pay little attention to day-to-day (or even month-to-month) shifts in stock price. Instead, they focus on the companies themselves, and they ask the right questions: Is the management solid? Does the company have a sound business plan? Are its products competitive? Does it belong to a healthy industry?
- They don't listen to "hot tips." Long-term investors do whatever they can to avoid expensive mistakes such as chasing after "hot" stock tips.