Invest for the long-term. That’s the catchcry of a phalanx of advisers since investing in equities emerged from the shadow of railway bonds. But investing for the long-term only makes sense if you invest in extraordinary businesses. The longer you stay invested in mediocre businesses the greater your loss in either nominal terms or opportunities foregone – or both. A quick scan of the share price of Telstra, AMP or the NAB reveals today’s share price is lower than were it was more than a decade ago. Long term investing in these businesses has produced poor outcomes for investors who may still unwittingly describe these businesses as ‘blue-chip’. In The National Australia Bank’s case, the share price of $31.73 at the time of writing, is lower than where it was in May 2001 – almost 15 years ago. In the short run the market is a voting machine but in the long run, share prices cannot help but reflect the economic performance of the underlying business. READ THE FULL ARTICLE HERE: (VIEW LINK)