This is a cool graphic by Brian Feroldi showing that historically if you:
Invest in the S&P for 1 year, you have a 50% chance of losing or making money.
However if you hold for 20 years, historically you ALWAYS make money, even if you buy at the total wrong times.
Image Description
The image is a graphic by Brian Feroldi showing pie charts that illustrate the historic odds of making money in the S&P 500 based on different holding periods: 1 day, 1 year, 10 years, and 20 years. As the holding period increases, the likelihood of making money grows, with a 20-year period historically showing no losses.
Positive Aspects
This graphic effectively visualizes the relationship between investment holding time and profitability in the S&P 500. It's clear and simple, making complex data easily digestible at a glance. The progression from uncertain short-term gains to guaranteed long-term gains is visually compelling and informative.
Key Takeaways
- Investing in the S&P 500 for 1 year gives you a 50% chance of making or losing money.
- Holding investments for 20 years historically results in making money, even with poorly timed purchases.
- The longer you hold your investments, the more likely you are to see positive returns.
Additional Insights
Investing isn't just about timing the market; it's about time in the market. This graphic echoes the wisdom of long-term investing, emphasizing patience over panic. Imagine your investments as a fine wine that gets better with age—just don't try to open it too soon!
