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• STOCK INVESTMENT GUIDE FULL

Long-term investing requires less of your time. The purpose of life is not to manage your investments… At the same time, all other things being equal, the less time you spend focusing on investing the better (assuming you like spending your time and energy on more than the stock market). Time matters with investing the more time your investments have to compound, the better. The compounding of money that would’ve been paid out as capital gains tax has a powerful effect on your investments over time. By not selling the money you would’ve paid in capital gains taxes is left to compound in your account, working for you instead of going to the government. Selling triggers a taxable event a portion of your built up capital gains must be paid to the government. When you hold a stock that has appreciated you have capital gains that are ‘built up’. Having fewer transactions is especially important in taxable accounts due to capital gains taxes. Every dollar taken out of your account is a dollar not building long-term wealth for you. Brokerage fees and slippage add up to reduce your returns over time. Buying and holding indefinitely reduces fees. On Reducing Taxes & FeesĮvery time you buy or sell a stock you incur transaction costs. An additional benefit of long-term investing is a reduction in both taxes and fees versus higher turnover strategies. Investing with a long-term mindset focuses you on what really matters for long-term investing success. This has led to much closer risk-adjusted returns for the Dividend Aristocrats relative to the broader market in the past 10 years. However, the Dividend Aristocrats have exhibited lower risk than the benchmark, as measured by standard deviation. The S&P 500 has generated annualized total returns of 14.6% over the same time period. The Dividend Aristocrats have generated annualized total returns of over 14.1% per year over the last decade. There are currently just 66 Dividend Aristocrats. The Dividend Aristocrats Index is made up exclusively of S&P 500 stocks with 25+ years of rising dividends that meet certain minimum size and liquidity requirements. The Dividend Aristocrats are an excellent example… Importantly, dividend paying businesses with strong competitive advantages have historically outperformed the market over time. If you invest for the long-run you will focus on businesses with strong and durable competitive advantages.

Long-term investing is successful because it puts your focus on what mattersfor the success of a business. On The Effectiveness of Long-Term Investing It reduces taxes and fees, keeping more money in your account to compound.It requires less of your time, freeing you of constantly watching the markets.It is highly effective, and very likely to result in meaningful wealth creation.There are 3 primary reasons to become a long-term investor: Slow Changing Industries For Long-Term Investors.

Long-Term Investing Quotes From The World’s Best Investors.Alternatively, scroll past the table of contents to watch a detailed video analysis on long-term investing. You can skip to a particular section of this article using the links below. Tip 6: Overreaction is Harmful to Your Wealth.Tip 5: Don’t Sell Because of Small Gains.Tip #3: Long-Term Investing Is Not Buy & Pray Investing.Tip #2: Stock Prices Lie, Dividends Tell The Truth.Tip #1: Long-Term Investing is Simple But Not Easy.6 Critical Tips for Long-Term Investors.Slow Changing Industries for Long-Term Investors.The Simple 4 Step Long-Term Investing Strategy.On The Effectiveness of Long-Term Investing.This guide covers why and how long-term investing works to compound your wealth over time. – Lowell Miller, The Single Best Investment, page 149 “ Long-term investing is about character, about depth of vision and the cultivation of patience, about who you are and who you’ve made yourself to be” Long-term investing requires a patient, disciplined mindset. Long-term investing is the process of buying and holding investment securities you believe will compound investor wealth indefinitely into the future.

STOCK INVESTMENT GUIDE FULL

You can download the full list of all 66 Dividend Aristocrats below:Ĭlick here to download your Dividend Aristocrats Excel Spreadsheet List now.

We recommend that investors looking for the best long-term investments start with the Dividend Aristocrats, a group of 66 stocks in the S&P 500 Index, with 25+ consecutive years of dividend increases. When Seth Klarman – one of the world’s best investors and self-made billionaire – says that the single greatest edge you can have as an investor is a long-term orientation, I pay attention. “The single greatest edge an investor can have is a long-term orientation.”