Featured image of post The 20 Myth: Why Slow and Steady Wins the Investing Race

The 20 Myth: Why Slow and Steady Wins the Investing Race

Is a 20 yearly return on a stock really that bad? Spoiler alert: Its actually amazing Lets talk about sustainable growth and why slow and steady wins the race Read more:

TL;DR

Chasing super-fast returns can be tempting, but slow and steady growth, like Microsoft’s 20% yearly gain, is what builds real wealth in the long run. Consistency and patience are key!

Story

Ever feel like you’re missing out because your investments aren’t skyrocketing like a rocket to the moon? I get it. It’s easy to get caught up in the hype when you see things like crypto or certain tech stocks making HUGE gains in a short amount of time. But let’s talk about something important: sustainable growth. Imagine a giant redwood tree. It doesn’t grow overnight, but over time, it becomes massive and strong. That’s the kind of growth we’re talking about with companies like Microsoft. Someone on a forum was actually complaining about Microsoft only going up 20% in a year! That’s actually a fantastic return for such a large, established company. Think of it like this: if you had a lemonade stand and it earned 20% more profit this year compared to last, you’d be celebrating, right?

Here’s the thing: slow and steady wins the race when it comes to investing. If you put $10,000 into Microsoft ten years ago and kept adding a little bit each month, you could have hundreds of thousands of dollars today. That’s the power of compounding and consistent growth. It’s not as flashy as a sudden 10,000% jump, but it’s a lot more reliable. The problem is, some people have been spoiled by these recent super-fast gains and have lost touch with what realistic returns look like. It’s important to remember that not every investment will be a home run. Sometimes, a single or a double is a win, too! Focus on the long game and invest in solid companies that have a history of growth. Don’t get discouraged if your portfolio isn’t making headlines every day. Steady growth over time is what truly builds wealth.

Advice

Don’t get caught up in the get-rich-quick hype. Focus on building a diversified portfolio with solid companies and let time work its magic.

Source

https://www.reddit.com/r/stocks/comments/1hteuwd/some_of_you_have_completely_lost_touch_with/

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