Long-Term Investing
Investing for the long term means giving your investment time to grow through good times and bad.
Years, not days
Investment values can move up and down along the way.
⏱️ Short-term
You may need the money soon.
📅 Long-term
You don't expect to need the money for many years.
Money you need soon may not be suitable for investments that can fluctuate significantly.
Growth building on growth
Over time, growth can build on previous growth — a bigger idea we'll explore properly in the next lesson.
Ups and downs along the way
Long-term investors may go through periods where their investments are worth less than they paid. That's normal — investing is not a straight line upward.
10 years starting at $100
Imagine a $100 investment moving up, down, up, down over 10 years. Why might someone investing for 10 years think differently from someone who needs the money next month?
The 10-year investor has time to ride out the ups and downs and doesn't need to worry about a temporary dip. Someone needing the money next month can't afford for it to be down right when they need it.
This lesson should encourage patience, not speculation. Avoid language like "get rich," "easy money," "guaranteed growth," or "beat the market."
Where to next
More on risk, reward and diversification.