You may be wondering, how can I become a long-term investor? There are two characteristics that make a good long-term investor. The first is only investing in long-term healthy asset classes. Avoid investing in short-term investments or fads. Instead, diversify your portfolio and invest in asset classes such as the S&P 500, foreign stock, the U.S. Bond Aggregate, and small cap stocks.
The second characteristic of a long-term investor is patience. Make sure you build a resilient portfolio and be patient during market downturns. Don’t make decisions based on market volatility. Also, create a cash reserve so you don’t have to sell your investments if the market drops.