A Month is a Year on Wall Street
— John Huber (@BaseHitInvestor) March 15, 2016
Apple isn’t the only company that Wall Street does this with but it is one the largest and most widely followed so it stands out.
One of the biggest errors we have as investors is a timing mismatch. We want things to happen now but we forget that these are very large companies and it takes time, multiple years, to implement strategies and generate returns on recent capital investments.
It’s the old metaphor a speed boat versus a super tanker. We think the companies can move like a speed boat but they really move like Super Tankers.
Buying and selling companies based on the emotional pendulum of Wall Street is a recipe for disaster. You have to train yourself to think in years not months.