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10-year thinking horizon

Money & WealthIntermediate
20 min5 steps1 practitioner

Make every major decision as if you will live with the consequences for a decade. Buffett holds stocks for decades because short-term thinking is the enemy of compounding returns.

Steps

1

Before any significant decision, ask: will this still make sense in ten years?

2

Write down the decision and its expected outcome at the 1-year, 5-year, and 10-year mark

3

Identify what could compound positively over that period and what could decay

4

Eliminate options that only look good in the short term

5

Commit to the long-term choice and review it annually against your original thesis

Practitioners

#long-term-thinking#investing#patience#compounding

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