Fortunately, although valuation fluctuations may be dramatic in the short term, they are constrained by market highs and lows and do not deviate from this range for extended periods. Therefore, as the investment duration lengthens, the impact of valuation fluctuations on investment returns gradually diminishes, exhibiting a decreasing trend year by year.
Meanwhile, the economic value created by high-quality companies does not decrease with the extension of the investment period. In the long run, the ongoing operating value of companies has a far greater impact on investment returns than valuation fluctuations.
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