Why the Best Investors Think in Decades
Embracing a long-term mindset can unlock decades of wealth creation for investors.
Successful investors, such as Warren Buffett, think in decades, not quarters. Buffett made almost all his wealth after turning 50, building his $150 billion fortune through deep research and analysis, and harnessing compound interest.
Buffett built his wealth by doing deep research and analysis on the companies he wanted to invest in and then harnessed the full potential of compound interest.
Similarly, Peter Lynch achieved a 29.2% annualized return for 13 years by investing in what he knew and having an ultra-long time horizon of 20 years or more.
Australian investors can fast-track their wealth-building journey by adopting a patient and long-term approach.
Author's summary: Investors should think in decades for wealth creation.
- Embrace a long-term mindset
- Conduct deep research and analysis
- Harness compound interest
- Invest in what you know
- Have an ultra-long time horizon