Investing for the long term does not mean parking your money, leaving it in one big pile, thinking you're diversified when in reality all of your investments are in one vehicle, a vehicle such as mutual funds, and then hoping that the wind does not blow or a fire does not break out.
Investing to us means being in the market (properties, businesses, paper assets) every day of our lives, gathering more information, gaining more and more real-life experience, and keeping our money moving, over the fire.
We do not buy, hold, and pray, which is what long-term means to millions of people.
One of the most important things a real investor needs to say is, "I want my money back. I also want to keep my investment."
If you can understand this principle of investing, you will understand what the velocity of money means.
It means you want your money back as quickly as possible so it can be reinvested to acquire other assets.
