By Kara van den Heever
I am often struck by how difficult it has become for modern investors to stay focused on the long term in a world that has become defined by immediacy.
Markets move in real time; headlines compete for attention and shifts in sentiment can create a constant sense of urgency. Yet, some of the most important investment decisions are not made in moments of reaction, but in moments of discipline.
Successful investing is rarely built on impulse. One of the defining features of modern markets is the sheer volume of information competing for investors’ attention.
In a landscape dominated by constant updates and breaking news, it is easy to mistake what is most visible for what is most viable. This may be one of the greatest challenges facing long-term investors today.
Behavioural finance teaches us that recent events naturally command our attention, particularly when they are dramatic, unexpected, or emotionally charged.
A good example is the reaction investors often have when the S&P 500 reaches a new all-time high, as this can create the impression that the opportunity to invest has already passed.
History, however, tells a different story. In 2025 alone, the index recorded 39 all-time highs, and 30.9% of those levels subsequently acted as a market floor. In addition, data shows that investing at a new high has historically delivered a higher cumulative return than investing on any other trading day.
These findings reinforce an important point: what attracts attention in the short term does not necessarily determine outcomes over the long term.
This is why the principle that time in the market matters more than timing the market remains as relevant as ever. As JP Morgan’s Guide to the Markets (December 2025) illustrates, despite average intra-year declines of 14.2%, annual returns were still positive in 35 of the 46 years reviewed.
This reinforces the idea that while attempting to anticipate every market movement may seem prudent, particularly during periods of heightened volatility, doing so consistently is impossible. More importantly, it can distract investors from the broader objective of long-term wealth creation.
Perhaps one of the most overlooked truths in investing is that quality often takes time to reveal itself. Strong businesses, disciplined management teams, diversified portfolios, and carefully selected opportunities do not always receive immediate market recognition.
Earnings growth, strategic execution, and competitive advantages tend to unfold gradually, while markets remain focused on the next headline or data release. As a result, periods of short-term underperformance or declines in a share price should not automatically be interpreted as evidence of a flawed investment thesis.
In essence, they often form an integral part of the uneven and sometimes unpredictable journey through which long-term value is ultimately recognised.
Behavioural research provides insight into why maintaining this discipline can be so challenging. The work of Daniel Kahneman and Amos Tversky demonstrated that people often draw strong conclusions from limited information, particularly in environments characterised by uncertainty. Investors are no exception. A single earnings announcement, a market event, or a few months of performance can exert a disproportionate influence on sentiment and decision-making.
Perspective remains one of the most important attributes an investor can possess. Long-term investing requires more than conviction; it requires the ability to step back from short-term noise and evaluate opportunities through a broader and more disciplined lens.
Ultimately, investors need perspective more than prediction. Markets will always fluctuate, headlines will always compete for attention, and volatility will always test conviction. Compounding rewards patience. Patience has proven to be one of the most powerful and enduring sources of investment success.
* Kara van den Heever is a Investment Analyst, Momentum Investment
