Mohammed Islam is a 17-year old schoolboy in New York City who claimed he made $72 million dollars trading stocks and other securities during recess at school.

His story, based on a “life-long passion” for trading, received a great deal of media attention in New York magazine and other outlets.

Of little surprise to anyone should be that Mohammed Islam made everything up about his trading profits. According to stories, he is in the proverbial “big trouble” with his parents for not telling the truth.  But the big story here is that individual investors should not be seduced by short term profits and instead focus on generating wealth from long term holdings in blue chips such as Coca-Cola (NYSE: KO), ExxonMobil (NYSE: XOM), Wal-Mart (NYSE: WMT), among many, many other outstanding publicly traded companies.

These do not have to be huge companies like Coca-Cola, ExxonMobil, and Wal-Mart, either.

There are many outstanding small cap companies, too.  But it is far better off to be a long term investor.  Investing for the long term puts time on the side of the individual.  That is the most powerful force in the universe!

It is also the hallmark of the greatest investors in history such as Warren Buffett, “The Oracle of Omaha.”

Warren Buffett, worth over $50 billion, likes to say that his favorite holding period is “forever.”  There is much to be said for that when the company is well-managed (and if it is not run in a sound manner, while buy the stock?)  Time is on the side of entities that have solid business models and capable management.   This becomes even more so when the publicly traded company pays a dividend.  That is certainly the case with Coca-Cola, ExxonMobil, Wal-Mart, and other blue chip stocks.  It is also why Warren Buffett has been a major shareholder of each for the long term!