Recently, I made the case that the market's sell-off of Ellie Mae (NYSE: ELLI) was overdone. Concerns about rising interest rates and slower mortgage activity were detracting from the long-term competitive advantages the company was successfully building. I even made a case that now could be a good opportunity for patient investors to initiate or add to a position.
As a follow-up to that article, I'd like to back that claim up and provide a few reasons why I think that.
To begin, long-term investors such as us thrive on time arbitrage. My colleague Ilan Moscovitz recently pointed out that Wall Street's quarterly earnings game is far crazier than you could imagine. Financial manipulation and twisted expectations are becoming the norm, supporting the claim that short-term investing is a fool's game (and that's with a lower-case "f").
Source: Fool.com