Long-term investing focuses on buying and holding investments such as stocks, bonds, or real estate for a period typically longer than five years. The philosophy behind this approach is that while short-term market fluctuations can lead to volatility, the overall trend of the investment value can increase significantly over time due to factors like compound growth, reinvestment of dividends, and overall economic growth. This strategy requires patience and a strong understanding of market fundamentals, as it minimizes the emotional reactions that often come with day-to-day trading.