Are you really a long-term investor?

It’s the New Year, and many are wondering how their stock portfolios performed in 2025.

- KEITH LIM

For most Filipinos, the results have been disappointing. Headlines talk about political uncertainty and weak growth, while the Philippine Stock Exchange index (PSEi) hovers near 6,000—roughly the same level as it was back in 2012. Consequently, many have already decided that stocks don’t work and have given up entirely.Part of the problem is expectations. The usual investment advice tells us that stocks demand a long time horizon filled with wide fluctuations—the price to pay for being more profitable than most other asset classes. While this is true, it must be emphasized that a “long time horizon” can take much longer than expected. People I have spoken to are shocked to hear that their definition of the “long term,” which usually hovers at a measly one to three years, is nowhere near long enough to assure positive outcomes. How long should we be prepared to hold our stocks to survive a downturn? While there is no universal definition of the long term, history can give us some hints.