Longterm investing pays off from "summary" of All About Index Funds by Richard A. Ferri
The idea of long-term investing is a simple one, yet it is often overlooked by many investors. The concept is straightforward: by holding onto investments for an extended period of time, investors give their assets the opportunity to grow and compound over time. This approach requires patience and discipline, as it may take years for investments to reach their full potential. One of the primary benefits of long-term investing is the power of compounding. When investments generate returns, those returns are reinvested back into the portfolio, allowing for exponential growth over time. This compounding effect can significantly increase the value of an investor's portfolio, especially over extended periods. Another advantage of long-term investing is the ability to weather market fluctuations. In the short term, markets can be volatile and unpredictable. However, over the long term, the general trend of the market tends to be...
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