Long Term Investor
The Long Term Investor is considered a trader who tends to hold stocks for several years.
Think about it - this is the type of investing our parents and even main stream advisors encourage people to invest.
In fact - if you contend with those who prescribe to the this philosophy, they will remind you of the fabled tortoise that beat the hare in the race!
The moral of their story?
Stay the long term and you will probably achieve your goals better than the investor who chases “hot tips” for quick profits in the stock market.
Personally - I think that it is a great strategy if that is the kind of investor you are.
Would I ever become one? Probably
Where I to, I would create a diversified portfolio.
The reason this type of investment is regarded highly is - ready?
It has worked!
All you have to do is look at billionaire investors like Warren Buffet.
Besides - the math is simple. Consider the following:
If you invested $500 every month and received an average annual return of 10%, you would expect to make $1 million in about 30 years.
Is this the type of investment for you? You decide!
There is really not much else to add.
Here are two things you can do:
1. Read the page on fundamental analysis to get an idea of the things that this type of investor looks for stocks.
When looking at the average total returns (includes reinvested dividends) of the stocks in the S&P 500:
Energy stocks performed best from 1999 through 2009
healthcare, indistrials and materials.
See the chart below for average total returns by sector.
2. Go to the
page to see the websites you can use to run fundamental stock screens (remember most use fundamental analysis as their trading philosophy)