Investing long? Then you shouldn’t care about small things like elections or pandemics

Investing long? Then you shouldn’t care about small things like elections or pandemics

Long-term investment usually means decades of years at least and hundreds of years at most. Usually, worthwhile assets are inherited through generations by a sequence of heirs. And the basis of such an approach of capital gain and retention is that most basic assets steadily grow over time: gold and other precious metals, valuable stocks of large companies, diamonds, solidly built real estate (made of stone, not wood-and-paper, as modern houses), land plots, and highly liquid derivatives like property rights. Money deposited in banks seems to be the least interesting asset but it, too, gives about +20% per a 10-year period.

Players on stock markets tell that no matter what kind of a good or bad thing happens, stock markets usually grow anyway (although investments in stock are more mid-term than long-term by nature).

 For instance, the S&P 500 rose +8% this year. For a 90-year history (1929-2019), S&P 500 has been giving +10.3% annual growths on average. High-quality bonds usually bumper the calamities when they occur. That’s an easy investment tip for you. But the core idea for every newcomer to the investment field is that your portfolio should be as diversified as possible (to compensate for possible losses). So, if your strawberry-exporting land plot doesn’t perform well this year, the stocks of your shipping company together with aluminum mining wing can largely lever you up.