Comparing three very simple investment strategies and backing them up with data, showing you what’s the best way to get the most returns on your investments
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The likelihood of timing the markets is extremely small. Trying to accumulate cash to buy at the next market bottom is usually a bad strategy as we will see. In fact, that’s not only impossible but also worse than just doing a very simple dollar cost averaging. This is because while you wait for the market to dip, it may continue to rise, leaving you behind.
But in this article, I’m going to show you how to beat the market!
I’m going to compare 3 different investment strategies. They are all very simple, but the reality is that all winning investment strategies are simple.
If you look at the greatest investors of all time, they have used very simple investment strategies to beat the market. The only people who use complex investment strategies are the ones who are trying to sell you something and need to justify the fees that they charge (financial advisors, hedge funds, actively managed ETFs, etc.).
So, in this article, I will give you some very simple winning investment strategies.
Do it earlier rather than later
BUT TO START, when it comes to investing, the only thing that the smart investor can do is save as early as possible. The earlier one starts investing, the better the return on investment.
The simple reason for this is that, as Albert Einstein said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
The earlier you save/invest, the more compounding effect you will have. You have to make that snowball work hard for you, but it will take time…