App Economy Insights goes through a thought experiment using the an investor with the worst possible market timing over the past 50 years. She saved $600k and turned it into $5.1m thanks to compounding. If she had been a little bit more astute and invested more consistently rather than just at market tops she could have $8.3m in those 50 years.
We highly recommend you read the article if you are a young(ish) person who is investing-curious.
As explained before, when it comes to investing, I believe being an optimist is a superpower. When you look at the past 150 years, the stock market has been an outstanding wealth-creation machine for those who embraced it. The market inexorably rises in the footsteps of GDP growth, while the world goes through challenges of all kinds, from wars, financial crises, crashes in commodities, to pandemics.
This has prompted me to:
- Keep a long-term mindset.
- Invest in the stock market like a venture capitalist.
- Embrace the art of not selling.
Source: https://seekingalpha.com/…
