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Long term investing is nearly a guaranteed way to financial wealth
(thread)
(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
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
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 doesnât have a long term mindset?
Well, the S&P 500 has down years
Remember, itâs an average
So even though itâs been averaging 8.87% for the last 20 years, that doesnât mean EVERY year is up!
Well, the S&P 500 has down years
Remember, itâs an average
So even though itâs been averaging 8.87% for the last 20 years, that doesnât 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
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
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 doesnât worry about year by year
All that matters is a LONG TERM MINDSET
BUT
5 years, 10 years, 20 years, 50 years
The market generally goes up
Look at the graphs
Decade investing doesnât 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
Youâll win
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
Youâll 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
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
