What Are the Advantages of Long Term Investing?
Apr.19, 2010
Long term investing is a simple strategy that lets you make money over the long term. The only thing you need to do to take advantage of this is to buy stocks in strong companies and hold onto them for as long as you can.
There are a few big benefits to doing this.
1. This is backed by History
While over the short term there is no guarantee of making money in the stock market, over the long term it can actually be relatively safe and likely to make you money. Time after time strong stocks have gone up over the long term and it is likely to stay that way for the foreseeable future.
Over time this slowly but surely investment style can actually add up pretty nicely.
2. Low Maintenance
A second advantage of long term investing is that you don’t need to constantly watch the market and be active in the day to day news. In fact doing so will only stress you out and have next to no affect on what your portfolio is actually doing. Instead, the only thing you really need to do in order to invest into the long term property and hopefully build a lot of wealth is to buy a 20 or more stocks in companies that you really believe in and just hang onto them over the long term.
3. Dividends
The last advantage of investing into stocks over the long term is that many of them will pay their investors a nice consistent passive cash flow in the form of a dividend. Dividends can add up over time, in fact many professional investors consider dividends to be the part of the investment that makes them the most money. Regardless of that, it can be a nice way to make some passive income.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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