New Year’s Investing Resolutions: Focus on the Long View

Success—whether in life or investing—rarely happens overnight. Some of the universe’s most impressive creations, from towering sequoias to majestic mountains, have resulted from gradual, patient growth. Investing follows a similar principle: discipline and consistency over an extended period can often produce meaningful results.

As we enter a new year, it’s worth reflecting on the quiet power of compounding. By maintaining a longer-term perspective and avoiding the distractions of short-term market noise or fluctuations, investors may be better positioned to navigate uncertainty.

Even modest returns, compounded over longer periods, can create impressive outcomes. Consider a one-time investment of $100,000 left untouched:

Time can have a powerful impact. Extending an investment horizon from 30 to 50 years can more than double and even triple the outcome at the same rate of return. Even a small increase in annual returns—just one percent—can make a substantial difference over decades.

Building Substantial Wealth Takes Time

Accumulating significant wealth often takes a lifetime. This was the observation from Forbes’ 2025 Annual Billionaires List: “The numbers speak for themselves: Nearly three-quarters of the world’s billionaires are between the ages of 50 and 79. Just 12 percent are under 50.”¹

The same long-term growth story applies to companies. Some of the world’s largest publicly-traded firms have achieved extraordinary valuations through growth over decades. As of November 2025, only 10 U.S. companies have surpassed a trillion-dollar market capitalization (“share price X shares outstanding”), and none did so overnight.

Berkshire Hathaway, the first non-tech firm to do so, exemplifies the power of patience. Warren Buffett first took control in 1965 when Berkshire was a struggling textile mill valued at roughly $22 million. The company went public 15 years later, in 1980, but it took another 44 years to reach trillion-dollar status. Buffett attributes much of this long-term success to the power of compounding—profits were reinvested steadily, allowing Berkshire’s value to grow over decades.

Looking Ahead to 2026: A Focus on the Long View

After solid gains in equity markets over recent years, many investors have been asking where the equity markets are headed in 2026. Rather than worrying about short-term market moves, longer-term investors should not become overly preoccupied with what might happen tomorrow or even in the months ahead. A more prudent perspective is measured in years, or even decades.

As we turn the page into 2026, why not resolve to think with a longer-term view? Even retirees can plan with an approach spanning a decade or more, given our increasing longevity. Significant growth can occur during that time, and one of the best ways for investors to continue benefiting is to stay invested. Look ahead with confidence, and here’s to the growth yet to come. Happy New Year!

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^{1. https://www.forbes.com/sites/monicahunter-hart/2025/04/01/the-worlds-youngest-billionaires-2025/}

^{Note: This article is not intended to provide investment recommendations. It highlights the power of compounding and the patience needed to achieve meaningful growth.}

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