It's not the size of the return, it's the length that matters

Investopoly · Sep 10, 2020 · 21m

Investing well is important. However, investing well over long periods of time is most important.Everyone would agree that making a one-time 50% return on an investment is a wonderful outcome. But making a 7% return each year for 40 years is a far better outcome, as it multiplies your initial investment by a factor of 15!This is an important principal to remind ourselves of, especially at the moment when our lives (and, to some extent, markets) have been turned upside-down by Covid-19!Even moderate returns over long periods generate massive wealthThe chart below published by Vanguard (click…