Investing and Long Term Mindset

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As Fools, we love to see the rising enthusiasm for the markets, investing, and business.

But it has to be long-term for it to be Foolish.

It has to be diversified.

It has to be about business performance.

And it has to be about making the world better.

Use this page as a reminder of why focusing on long term investing is key, as well as for resources on current events in the market that may make you question your long term strategy.

First up: a refresher on our Dos and Dont’s of Investing.

Investing involves taking some risk, but investors can control most of those risks just by avoiding the dangerous mistakes too many investors make. Follow Foolish principles instead, and we think investors like you will be on your way to financial success.

What Is Going on With GameStop?

Our analysts and Motley Fool Live hosts, Tim Beyers, Asit Sharma, and Brian Withers, discuss the latest news in the stock market involving GameStop and AMC.

Still not convinced that long term is the way to approach investing?

Check out the screenshots below from our Simulator tool. See the probability that a portfolio would have made money over time while holding a given number of stocks, based on the historical performance of random Motley Fool stock picks. All stocks are equal weight in our analysis. 

This simulation is not a prediction of future stock performance and is instead intended to demonstrate the importance of diversification and long term holding when investing. It is based on historical data using Motley Fool Stock Advisor performance from March 31, 2002 – June 19, 2020, using an average portfolio from an average month during that time period. For more information on the methodology, please see our Terms of Service.

If a Fool’s portfolio held 50 stocks for 5 years, the likelihood it would have a positive return is 98.7% with an average return of 69.8%.

If a Fool’s portfolio held 50 stocks for 3 years, the likelihood it would have a positive return is 89.1% with an average return of 34.6%.

If a Fool’s portfolio held 50 stocks for 1 year, the likelihood it would have a positive return is 79% with an average return of 11.3%.

The longer you hold your stocks, the more likely you are to have positive returns and much higher returns.

To learn more and check out other resources, click on the blocks below!

Remember: Stocks go up and down in the short term, but they always go up in the long term. You’ve got this!