Rok Herman
Slovenia
5m
Dear followers, one important thing I want to emphasize, especially for newcomers to the investing world. In investing, one of the most underrated qualities is a long-term track record. It is easy to impress with outstanding results over 6, 12, or even 24 months. In fact, many investors who outperform spectacularly in the short run fail to maintain that edge when the horizon extends to 5 or 10 years. This has been proven repeatedly. Numerous studies show that most mutual funds and hedge funds which rank in the top quartile for 1–2 years often fall back to the middle or even the bottom over the following decade. Over 80–90% of actively managed funds underperform their benchmark over 10–15 years. This happens because short-term results are often the product of a specific market cycle, concentrated bets, or even pure luck. Long-term consistency, on the other hand, is the real indicator of skill. This is why I never wanted to promote myself based on “crazy results” over 12–18 months. It can look attractive, but it sets the wrong expectation. Instead, I am proud to slowly build a decent and stable track record. Results are now starting to reflect this, but in my opinion, the true measure will only be visible over 10+ years. My investment goal of over 10% year-over-year gain sounds really low nowadays, but if you try to put your investment with that return over 15 years, numbers get crazy. Patience, risk management, and adaptability are what truly compound wealth. As Warren Buffett said “The stock market is a device for transferring money from the impatient to the patient.” My approach has always been aligned with this principle. So while short-term performance may grab attention, it is the decade-long consistency that truly defines an investor. Whenever you analyse an ETF, mutual fund or popular invest pay close attention to long-term returns. All the best!
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