Long-Term Approach
Long-term investing focuses on holding investments for years (or decades) to benefit from growth, compounding, and fewer emotional decisions.
Popular Long-Term Strategies
Buy and Hold
You buy strong investments and simply hold them for years, no matter what the market does short-term.
- Focuses on good companies, ETFs, or index funds
Pros: Simple, less stress
Best for: Busy people, beginners, retirement planning
Dollar-Cost Averaging
Invest a fixed amount every month or week, regardless of price.
- You buy more when prices are low, less when they're high
Pros: Smooths out market ups & downs
Best for: Anyone with regular income
Investing in Index Funds or ETFs
Own a broad "basket" of companies through a single low-cost fund.
- Diversified and historically strong growth
Pros: Easy, low-maintenance, strong returns
Best for: Beginners, passive investors
Growth Investing
Buy companies expected to grow a lot in the future.
- More volatile but higher long-term potential
Pros: Big long-term gain potential
Best for: Investors who can handle risk
Dividend Reinvestment
Own companies that pay cash dividends and reinvest them into more shares.
- Steady income plus compounding over time
Pros: Steady income + compounding
Best for: Retirement income, passive growth
Why Long-Term Usually Wins
- Compounding grows gains over time.
- Fewer trades = lower fees and fewer mistakes.
- Less stress than timing every market move.
Tips to Stay Consistent
- Automate contributions (e.g., monthly DCA).
- Use diversified funds to avoid single-stock risk.
- Revisit annually to rebalance or adjust risk.