Invest long term

Nvidia has had a spectacular rise over the last few years, which is well documented. But did you know that the company has been listed for 25 years? That's a long time and it certainly hasn't been plain sailing throughout that period.

Eddy Elfenbein pointed out in a recent newsletter that if you'd bought $10 000 worth of Nvidia at the beginning of 2003, it would have been worth 10% less by the end of 2014. The share price did nothing for 12 years. Not many investors have the patience to hold a stock for 12 years with a negative return.

The company today is very different to what it was back then. But it's a good lesson that if you have owned a stock for a year or two, or even three, and it's not delivered good returns but the underlying business is still in good shape, be patient.