How you could've made 356 % returns doing NOTHING
Scroll down for an explanation ⬇️
Scroll down for an explanation ⬇️
Had you stayed invested in Nifty from 1st JAN 2007 till today
You would have made a whopping 356% return.
BUT
That would be the result of you NOT trying to time the markets.
Staying in the field regardless of the conditions
You would have made a whopping 356% return.
BUT
That would be the result of you NOT trying to time the markets.
Staying in the field regardless of the conditions
If you missed the best 30 days during this period
Your returns would be -18.14 %
And nobody can predict the best days, so
It's important to ALWAYS be in the markets
Your returns would be -18.14 %
And nobody can predict the best days, so
It's important to ALWAYS be in the markets
While its almost impossible, if someone had somehow skipped the worst 30 days during this period
Their returns would be a staggering 2998.76%
Their returns would be a staggering 2998.76%
There are several examples of why buy and hold is better than active management
1. A 20-year holding period NEVER produced a negative result between 1926 and 2011 (US Markets)
1. A 20-year holding period NEVER produced a negative result between 1926 and 2011 (US Markets)
The best and worst days have a large role to play
The below graph captures their importance
The below graph captures their importance
2. The table below highlights that
For the average investor, being invested,
And
Not making a lot of short-term bets may be the best way to accumulate long-term wealth
For the average investor, being invested,
And
Not making a lot of short-term bets may be the best way to accumulate long-term wealth
PS
Market timing refers to an investing strategy
Through which a market participant makes buying or selling decisions
By predicting the price movements of the financial asset in the future
Market timing refers to an investing strategy
Through which a market participant makes buying or selling decisions
By predicting the price movements of the financial asset in the future
TIME IN THE MARKET
Will always beat
TIMING THE MARKET
In the long term
Will always beat
TIMING THE MARKET
In the long term
Fun fact
From 2002 to 2020
There were only 8 years when Indian markets
Did not reach a new all-time high
From 2002 to 2020
There were only 8 years when Indian markets
Did not reach a new all-time high
If you like this thread, do read my previous thread on Lessons from a man who turned $5 into Millions.
I hope you've found this thread helpful. ❤️
Follow me @mohitsharmadl for more.
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