Invest for the long term from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Investing for the long term means having the patience to let your investments grow over time without constantly buying and selling. It requires a mindset that focuses on the big picture rather than short-term fluctuations in the market. When you invest for the long term, you are essentially betting on the overall success and growth of the economy. This means you believe that over time, the market will go up, despite any temporary setbacks along the way. By staying invested for the long term, you are able to weather these short-term storms and benefit from the long-term upward trend of the market. One of the key benefits of investing for the long term is taking advantage of the power of compounding. By leaving your investments untouched and allowing them to grow over time, you can benefit from the snowball effect of compound interest. This means your money earns interest on interest, leading to exponential growth over time. Another benefit of investing for the long term is reducing the impact of market volatility on your investments. While short-term fluctuations can be unnerving, they have less of an impact on long-term investors who have the time horizon to ride out these ups and downs. By staying invested for the long term, you can avoid making emotional decisions based on market movements.- Investing for the long term requires discipline, patience, and a focus on the future rather than the present. It involves staying the course even when things get tough and resisting the urge to make impulsive decisions based on short-term market movements. By adopting a long-term mindset, you can set yourself up for long-term financial success and security.
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