The Counterintuitive Secret to Generational Wealth

"Over the years, countless studies and anecdotal examples have shown that the best investors often share one surprising trait: they do absolutely nothing. In fact, some of the top-performing accounts in major brokerages belong to investors who forgot they even had them - people who lost their passwords or, believe it or not, passed away."

"Markets are unpredictable in the short-term, yet remarkably consistent over long periods. Consider the S&P 500. Despite a number of vicious cycles of volatility, crashes, pandemics, and geopolitical shocks, this benchmark has delivered an average annual return of roughly 10% over the long-haul."

"Fidelity once analyzed decades of market data and found that an investor who missed just the ten best days of market performance in a 30-year span would lose nearly half of the potential gains compared to one who stayed fully invested. The takeaway is simple: patience isn't just a virtue, it's a mathematical edge."

Numerous studies demonstrate that the most successful investors often achieve superior returns by doing nothing rather than actively trading. Top-performing accounts frequently belong to investors who forgot about their holdings or became inactive. Markets are unpredictable short-term but deliver consistent long-term returns, with the S&P 500 averaging roughly 10% annually despite volatility and crises. Missing just ten of the market's best days over thirty years can eliminate nearly half of potential gains. The mathematical advantage of patience and compound growth over decades far exceeds the benefits of attempting to time market movements. Active trading and frequent portfolio adjustments typically underperform simple buy-and-hold strategies.

Read at 24/7 Wall St.