Finance author and TLV podcast guest Morgan Housel recently wrote a five-step guide on “How to Do Long Term.” In Housel’s words…
Long term thinking is easier to believe in than accomplish.
Most people know it’s the right strategy in investing, careers, relationships – anything that compounds. But saying “I’m in it for the long run” is a bit like standing at the base of Mt. Everest, pointing to the top, and saying, “That’s where I’m heading.” Well, that’s nice. Now comes the test.
Long term is harder than most people imagine, which is why it’s more lucrative than many people assume. Everything worthwhile has a price, and the prices aren’t always obvious. The real price of long term – the skills required, the mentality needed – is easy to minimize, often summarized with simple phrases like “be more patient,” as if that explains why so many people can’t.
To do long-term effectively you have to come to terms with a few points.
