$BTC
#加密货币总市值重回3万亿 #特朗普称无意解雇鲍威尔 #加密市场反弹 #币安Alpha上新 #美股下挫 The essence of investing: When lightning strikes, you better be there!!!!!!!!
A piece of data tells us the importance of long-term holding:
From 2003 to 2022, if you did not miss any day, the annualized return of the CSI 300 and Wind All A will reach 6.47% and 8.39%;
But if you missed the 5 days with the largest increases, the annualized return of the CSI 300 and Wind All A will drop to 4.3% and 6.17%;
If you missed the 10 days with the largest increases, the annualized return of the CSI 300 and Wind All A will drop significantly to 2.62% and 4.33%;
If you missed the 20 days with the largest increases, the annualized return of the CSI 300 and Wind All A will drop to -0.16% and 1.42%;
And if you missed the 30 days with the largest increases, even if you held for 20 years, the final annualized return of the CSI 300 and Wind All A will turn to -2.58% and -1.15%.
In the 20 years, there are about 4800 trading days, and the returns from long-term investment are determined solely by the 30 days with the highest increases, accounting for a pitiful 0.6%... and the time distribution is extremely uneven. If enduring volatility is a must when entering the stock market, then this most important 30 days is the reward for our long-term holding! This is also why the longer you hold, the higher the returns. Because only by holding long-term without fiddling around can you avoid missing out on these 30 trading days with the largest increases!
Unfortunately, regrettably, big data shows that 58% of investors hold their positions for no more than 1 year, only about 22% can hold for 1 to 2 years, and those holding for 2 to 3 years and more than 3 years are only 7.42% and 11.25%, respectively. This data completely aligns with the "80/20 rule" in the stock market!
So, what is the essence of investing? It is that when lightning strikes, you better be there, which actually tells us to hold undervalued quality companies for the long term, don’t fidget!
