Long term investing is nearly a guaranteed way to financial wealth

(thread)

Before I explain, I want to make this clear

Nothing is guaranteed in the market

BUT

With a long term mindset, you can nearly mitigate that risk to 0

Let me explain

If we look at the S&P 500

From 1926-2018, the average return has been around 10%-11%

If we look at the last 20 years, the average return has been 8.87%

As you can see, OVER TIME, the market generally goes up

Actually, the S&P 500 has gone up in 70% of its years

But what if someone doesn’t have a long term mindset?

Well, the S&P 500 has down years

Remember, it’s an average

So even though it’s been averaging 8.87% for the last 20 years, that doesn’t mean EVERY year is up!

For example,

In 2018 = -6.24%

2015 = -0.73%

2008 = -38.49%

2002 = -23.37%

But here is where the long term mindset comes into importance

Instead of selling during the down years

Do 2 things:

1. Hold

2. BUY MORE

But you MUST have a long term mindset with investing

Year by year the market fluctuates

BUT

5 years, 10 years, 20 years, 50 years

The market generally goes up

Look at the graphs

Decade investing doesn’t worry about year by year

All that matters is a LONG TERM MINDSET

This thread does not include inflation calculations

Also, I want to make this clear again

Nothing is guaranteed in the market

BUT

I feel confident in saying that if you have a long term mindset in the market

You’ll win

Thanks for reading this thread!

I hope I was able to explain the importance of a long term mindset

And how you nearly NEVER LOSE with investing for the long term

I appreciate it and if you found value, feel free to share!

@DecadeInvestor