Published on 18 Mar 2023 on Insider Monkey via Yahoo Finance
15 Most Promising Long-Term Stocks According to Analysts
In this article, we will take a look at the 15 most promising long-term stocks according to analysts. To see more such companies, go directly to 5 Most Promising Long-Term Stocks According to Analysts.
Investing in the stock market for the long term is perhaps the surest of the ways to expand your wealth. On the books it sounds very easy: just invest your money in stocks for the long term and forget. But the pull of the short-term cycles and volatility is so strong that many give in and cash out or change their strategies before their investments could bear fruit. While panic selling or cashing out doesn’t hurt in the short term, when you contextualize these short-term, often irrational decision making based on data, the real toll of short-term thinking comes to light.
For example, a study by Franklin Templeton Investments shows that if you had invested $10,000 in the S&P 500 Index on January 1, 2003, your original investment would have grown to $62,755 by the end of 2022. But that’s not the most interesting part. What makes the study interesting is that its data shows that if you missed just 10 days out of this 20-year period (total 5,035 trading days), your final return would be reduced by a whopping 64%. That means not having your money invested in the stock market for just 10 days in this 20-year period would give you $28,750 at the end of 2022, and not $62,755. That’s because individual days in the stock market have a lot of ups and downs. If you cash out or panic sell during bad days, you lose the potential profits that come on good days.