When we plant a seed, it takes time to grow and reap the fruit. But once it starts it’s on going. Same thing works for your investments, if you give enough time for your investments to grow it will definitely reward you for your future. Therefore be a long-term investor, Give “enough time” to ripe your Investments, so it can reward returns and works for you. If we say time is the best healing solution to all problems, it’s also true for the Investments!
Time is the essential characteristics of any investment. If you think so you are a long-term investor and long-term investors are “intelligent” investors.
As truly said by Benjamin Franklin “Money makes money and the money that money makes, makes money.” If you could make your money make money for you then that’s what we want it for.
Warren Buffett, well-known as a most successful investor said “We don’t have to be smarter than the rest. We have to be more disciplined than the rest”.
Long term investor is he who invests regularly and with discipline with a strong & clear view of objectives. Investment is not about winning or losing a game. It’s also not about gambling or speculation; though in share market it could be a way to book short-term profit but it’s not an investment strategy that will work every time and for everyone. It may give you a chance to smile which won’t last longer though.
So, If you are a Long term investor then here are some benefits you can enjoy:
- Short term fluctuations, volatility or market trends will not have any effect on your investments.
- Helps to minimize the risk. In other words, investing for long period can help in reducing the negative returns.
- Helps to minimize the cost. Investing in and out on continue basis may cost you more as you may attract capital gain tax, expenses, fees etc.
- Tax effective. Long term investments are generally comes with tax advantage.
- Long time frame gives you more flexibility to invest in the different asset classes.
So, be a long-term investor. Remember, long-term investor laughed last is the best and forever 🙂