Passive investors — those who only invest in index or mutual
funds — are really at the whims of the market. Unfortunately, the market
can be quite fickle as it can go from having a good year, to turning in
lousy performance faster than your broker can send you the next
quarterly statement. We saw this at the end of 2014 as tumbling oil
prices took the resource-focused Canadian stock market down with it.
Thankfully, there is a much better way to invest than to be tossed
and turned by the whims of the market. Simply invest in great stocks and
hold them for the long term. We see this demonstrated by looking back
at the great stocks of the past decade, where long-term holders saw
returns of 1,000% or more, while the Canadian stock market, as measured
by the S&P/TSX Composite, was only 56%. (more)
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