Why is long-term investment better than short-term?

[Starmix]

Investors thoroughly study the terms they have to decide on so that there is no regret at the end of the term, when they can harvest their profit. There are investments good for some months, some years, and long years. But most of the investors I met prefer a long-term investment. Those who choose short-term investments like to have a quick profit.

One thing about a long–term investment is; it allows your returns to compound over time. Compounding occurs when the earnings from your investments generate additional earnings, creating a snowball effect. The longer your money is invested, the more significant the impact of compounding, leading to exponential growth. This could refer to the formulation of Albert Einstein of his Rule of 72.

Whereas short-term investments are more susceptible to market fluctuations, which can lead to significant gains or losses in a short period. Long-term investing allows you to ride out market volatility. Over time, the ups and downs of the market tend to even out, reducing the risk of losing money.

Further, while short-term investing can offer the potential for quick profits, long-term investing is often considered better due to the power of compounding, reduced impact of market volatility, lower transaction costs, tax advantages, easier management, potential for higher returns, inflation hedge, and disciplined approach. However, the business operators need to consider their personal goals, risk tolerance, and time horizon when making decisions.

 

[Nomad]

Not all assets are good for long term investment, some assets are better when you invest for a short term.

 

[monster_masterpiece]

Not all assets are good for long term investment, some assets are better when you invest for a short term.

Long term investment doesn't mean buy virtual antiminer it is new form of ponzi scheme.

 

[Starmix]

Some investors have preferences. It is better to have both long and short-term investments. However, investors also know what is best for them. For me, I do both short and long-term investments

 

[Nomad]

Long term investment doesn't mean buy virtual antiminer it is new form of ponzi scheme.

There are a lot of ways to do log term investment, it does not mean just investing in crypto mining, it also means real estate, stocks, gold, etc.

 

[Fidelia]

Long term investment gives you leverage to manage volatility than short term investment plans. I prefer long term investments.

 

[Starmix]

I also have one long - term investment in stocks and postal bonds. I also have a short - term investment where I earn profit monthly.

 

[Augusta]

Long-term investing offers reliable returns, less pressure, and better tax efficiency for the investor.

 

[King Belieal]

I am currently working on building a long term investment meanwhile, I am currently on a short term investment that is yielding daily. I prefer long term investment better because the yield is higher due to the power of compounding.

 

[Suba]

I don't think either is better, but it depends on a person's investment goals and the asset class they choose. Financially stable people tend to choose long-term investments, although many of us choose both.

 

[Starmix]

Yes, it all indeed depends on us on what to prefer in investing, either short-term or long-term investment. It also feels good and secure if there is an investment to wait.

 

[eLdavis]

With long term investments, there is a chance of having a higher return, this is one of the main reasons why long term investments is better.