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I expect Spud to tell us about this

There are no shortcuts to investment success. While some investors may try to time the stock market by trading shares on a short-term basis, ultimately a long holding period is required to allow compounding to work its magic.

Clearly, a long-term investment approach is easier to contemplate in theory than it is to put into practice. And it is particularly difficult to remain patient after the stock market’s distinctly underwhelming performance of recent years. Indeed, the FTSE 100 trades 1pc lower than it did at the start of 2018.

Summat like, see, see, second hand shares aren’t the way to invest for a pension. No rise in 5 years. See!

Ignoring that compounding, as he always does. FTSE has been paying 3 to 4% dividends over those 5 years. The total return, when reinvested, we’ll leave to the reader to calculate. But it is significantly better than bond returns – yea including interest – over that period of time.

1 thought on “I expect Spud to tell us about this”

  1. making an investment is by any definition a complicated way of making a bet. I have for sometime wondered if Murphy gets what risk is. OK I know he doesn’t really understand much of anything!

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