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Your Exclusive Guide to Wealth through Long-Term Investing
John Smyth
September 08, 2023
Hello everyone!
In this episode as we dive deep into the power of generational investing, tax-saving strategies, and the remarkable 25% CAGR story from Microsoft's IPO in 1986.
Don't miss out on valuable insights into S&P 500 odds, coffee can portfolios, short-term trends, and the impact of options trading volatility.
What we’re chatting about this week?
The Power of Long-Term Investing
The episode delves into the world of long-term investing as we discuss the evolution of holding periods, from 7-8 years in the past to as short as 6-8 months in 2020. Long-term investing is emphasised as a smart move for mitigating taxes, with anecdotes like enduring 16 years of no returns leading to a 25% compound annual growth rate (CAGR) for Microsoft since its 1986 IPO.
Short-Term Investment Challenges
We shine a light on the challenges posed by the shift towards short-term investing, including the impact of the 2020 stock market frenzy and the emergence of new brokerage platforms like Revolut. We discuss how these factors have influenced market dynamics and the potential risks associated with short-term trading strategies.
Recommended Investment Books
We also provide valuable recommendations for investment literature, emphasising the importance of foundational texts like Benjamin Graham's "The Intelligent Investor" and Peter Lynch's "One Up On Wall Street." These books are highlighted as must-reads for anyone seeking to navigate the stock market successfully, offering timeless wisdom for finance professionals and enthusiasts alike.
Stay tuned for more captivating insights and thought-provoking discussions in our upcoming editions. Until then, keep exploring, keep learning, and keep thriving in the world of finance!
Happy investing!