“The vast majority of people compete in a time horizon that’s very near dated. There are many fewer investors who are thinking out a decade and beyond.” - Matthew McLennon

Matthew McLennon highlights a common short-term focus among investors and the general populace when making decisions, particularly in investment and financial planning. Here's a breakdown of what he means by the statement:

Key Points:

1. Short-term Focus:

• "The vast majority of people compete in a time horizon that's very near dated."

• Most people and investors make decisions based on short-term goals and results, often looking at immediate returns or outcomes within a few months to a few years.

2. Long-term Thinking:

• "Few fewer investors are thinking out a decade and beyond."

• Only a few investors consider long-term strategies, looking at the potential of investments over ten years or more.

Implications:

• Market Behavior:

• Short-term trends and news often influence the market, leading to volatility and reactionary behavior.

• Investment Strategy:

• Long-term investors may benefit from less competition and the potential for substantial growth, as short-term fluctuations do not sway them.

• Decision Making:

• Thinking long-term requires patience, thorough analysis, and the ability to withstand short-term market movements without making impulsive decisions.

Context in Wealth Management:

• In wealth management, encouraging clients to adopt a long-term perspective can lead to more stable and potentially higher returns, as investments have time to grow and compound.
• Long-term strategies often involve thorough planning and focusing on fundamental value rather than immediate gains.

Conclusion:

Matthew McLennon's statement underscores the importance of considering longer time horizons in investment decisions. While most focus on the near term, those who plan for the long term may find unique opportunities and advantages in the market.

Matthew McLennan is co-head of the Global Value team and a portfolio manager of the Global Value, Global Equity, International Value, International Equity and US Value strategies. Prior to joining First Eagle in September 2008, Matt worked for Goldman Sachs Asset Management in London, where he served as co-portfolio manager of Global Equity Partners, a group he co-founded in 2003 that ran a focused global equity portfolio for offshore private wealth clients. Earlier in his career, Matt was equity chief investment officer of the investment strategy group for Goldman Sachs’ private client business. He joined Goldman Sachs in Sydney in 1994. Matt started his career in 1991 in Brisbane, Australia, with the Queensland Investment Corporation and was ultimately responsible for the firm’s international equity exposure. He was born in Rabaul, Papua New Guinea, and grew up in Queensland, Australia. He received his bachelor of commerce with first-class honors and master of international commercial law from the University of Queensland, and he holds the Chartered Financial Analyst designation. Matt is interested in the field of education, and he is a trustee (and former president of the Board of Trustees) of the Trinity School in New York City. He serves on the Board of Dean’s Advisors of the Harvard T.H. Chan School of Public Health and as a board member of the University of Queensland in the United States of America. He also serves on the Advisory Council of the Institute on the Formation of Knowledge at the University of Chicago and is a board member of the Library of America.

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