Long Term Investing | Mimi Bebe

Long term investing is a wealth creation strategy that involves holding onto investments for an extended period, typically five years or more. This approach allows investors to ride out market fluctuations and benefit from the power of compounding. According to a study by Fidelity Investments, investors who held onto their investments during the 2008 financial crisis and did not make any changes to their portfolios saw an average return of 8% per year from 2008 to 2020. In contrast, investors who tried to time the market and made frequent changes to their portfolios saw an average return of 2% per year during the same period. Long term investing requires discipline, patience, and a well-thought-out investment strategy. It's essential to have a clear understanding of your financial goals, risk tolerance, and time horizon before investing. With the right approach, long term investing can be a powerful way to build wealth over time, with some investors seeing returns of 10% or more per year, as reported by investment firm, Vanguard.